Title 6 Complaint | Page 8

TIMELINE The State of Michigan has been in authority over the Detroit Public Schools for approximately 13 of the last 16 years and is a recipient of Federal funds. Detroit Public Schools is a majority-minority district with the highest concentration of minorities of any city of 100,000 residents according to the 2010 US Census. 1994 In 1994, residents approved a $1.5 billion dollar capital bond program for Detroit Public Schools, which they will be paying for until at least 2033. The original bond was to be used to repair and renovate school buildings to service a then stable student enrollment of 167,000 students. The control of the spending of the bond dollars was a hotly contested issue, where various parties tried to take planning and spending authority from the school board. School community parents were able to have their voices heard on facility needs under the elected board. In 1994, Detroit Public Schools had 261 schools, not including administration buildings. Total repair costs and construction estimates stood at $3.9 billion – well above the bond amount. 1999 Approvals for spending bond funds were delayed in Lansing as the Governor and various parties in the region fought for access to the bond dollars. Such were the degree of delays that by 1999, only $300 million of the bond money had actually been used. Enrollment had continued rising, topping out at 173,000 students. Also in 1999, the state enacted special legislation (Public Act 10 of 1999) for the purpose of allowing thenGovernor John Engler to replace the democratically elected school board with a CEO whose power was that of a Superintendent and the elected board. The law allowed voters to decide after five years whether to stay with the CEO model or return to an elected school board. Residents were not happy about the forced take-over of their school district and loss of local control. The immediate result was a loss of 5,000 students from the district for the next school year, which began a hemorrhage of students. This was the first enrollment decline in a decade. Detroit Public Schools was operated under receivership of a CEO with an appointed board with no governance authority from 1999 through 2005. When DPS was first put into receivership, they actually had a stable budget with a $93 million surplus. 2003 Within four years, state management had created a $200 million deficit. All decisions were made by the CEO. A loan of $210 million was borrowed to cover the deficit with a repayment over 15 years of $315 million. 6