DPS Could Face Shutdown Over Finances

Detroit (WWJ)  -- The Detroit Public School district's money crisis could force a shutdown of the district, as early as Monday.

The news comes as school officials spent the weekend trying to figure out how to solve the district's $400 million deficit.  The crisis could also lead to another state takeover of Detroit school system. 

Monday night, the school board will vote on a proposal calling for $500 million in cuts for 2009 and 2010, including more than 1,700 layoffs and closing seven schools.  If the plan is rejected, a shutdown could happen almost immediately.

At the same time, the Michigan Senate passed a resolution over the weekend calling for a state investigation of the finances of the Detroit School District, citing reports that DPS has hidden deficits for at least four years.  

Senator Irma Clark-Coleman (D-Detroit) called it a step toward a state takeover of the city's schools, which last happened in 1999. 

Clark-Coleman also accused Senate Majority Leader Mike Bishop (R-Rochester), who sponsored the legislation, of plotting to privatize all Detroit schools.