Seven years of overspending its budget may cause Detroit Public Schools to file for bankruptcy.

It’s a good thing that Michigan sent a state-appointed financial manger to get Detroit Public School’s financial situation in order, because once Robert Bobb got there he started referring to their budget as the worst he’d ever seen.  He said, “They said the sky was falling but they didn’t act.”

Bobb has overseen drastic measures since …

Tags: Bankruptcy Detroit Public School Education Public school United States

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According to an article in the Star-Telegram, the opening of a new school in the Crowley district is on hold indefinitely. Basically there isn’t enough money to open the school and pay for the teachers and other school staff needed.

The article said:

"Driving by those buildings every day is a painful reminder of the failed state funding formula," said Greg Gibson, the Crowley district superintendent. The intermediate schools "were …

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Faced with a dire economic situation, the Kansas City School District is considering closing 30 schools.

 

In bankruptcy news, the Kansas City School District is said to be on the verge of bankruptcy unless major changes are made.  On Tuesday February 16 th, the district held meetings letting parents know that the district is considering closing 30 schools within the district.  Hundreds of people showed up to hear the news, and the …

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If a debtor’s delinquent school tuition is discharged in bankruptcy, the college/university is prohibited from refusing to release the debtor’s transcript/diploma.  Most of us know that student loans are nearly impossible to discharge; but school tuition is not typically considered a student loan and can be discharged during bankruptcy.

For example, if a debtor who was paying tuition at a University, dropped …

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… in the Dallas Morning News, the Dallas Housing Authority has received $8.8 million to use for public housing as part of the Obama administration stimulus package. The agency plans to use the funds to replace roofs, upgrade security lights, resurface parking lots and replace carpets in many public housing properties. The Dallas Housing Authority which owns and manages 3,900 units at 27 locations also plans to use the stimulus money within 3 years to complete a number of significant …

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There’s an interesting article at USA Today about the affects of the foreclosures crisis on school district funding nationwide.

The article said:

Census data show the districts’ education budgets also are especially reliant on local property tax revenue, which is likely to slide at a time when thousands of residents in the districts are losing their homes and falling off the property tax rolls.

As foreclosures rise, property tax revenue declines significantly. And for …

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… filings caused by medical debt is not known, a study conducted by researchers at Harvard Law School, Harvard Medical School and Ohio University examined bankruptcy cases for 2007 and concluded that nearly two out of three bankruptcies in the nation stem from medical bills. And that’s before the economic crisis.

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… years.”  More students are opting to stay at home (or closer to home) and attending cheaper, public universities for undergraduate studies.

Karen Copetas, the admissions director of Western Washington University, stated they have experienced a 28.5 percent increase in transfers, with many students citing money as a motivating factor.  Other parents are using reward programs like www.upromise.com to save up for future expenses.  Essentially, trying to avoid or reduce the amount of the …

… would get more than $5 billion for Medicaid and $1.8 billion for food stamps, for instance. School districts would receive hundreds of millions to build classrooms or fix up crumbling schools.

I find it fascinating that as Americans face foreclosure, job losses and bankruptcy, our government officials are allocating $1.8 billion to food stamps and "hundreds of millions" to build schools. Why more money for food stamps than for schools? Maybe our government knows …

… competitiveness in the longer term, and improving the environment by adopting energy efficient school and infrastructure repairs. In total, Obama and Biden’s $25 billion investment will result in 1 million jobs created or saved, while helping to turn our economy around.

Investing in the country’s infrastructure could actually work in the short-term and long-term to create more jobs, especially in construction and the blue collar sector. Will we experience another "public …

… - In June 1992, Murray filed for bankruptcy in the state of California. According to public records, his debt was discharged by the court.

- In February 1993, the state of California placed a lien on Murray for failing to pay $1,578 in state taxes.

- In May 2001, the state of California placed a second lien on Murray for failing to pay $19,457 in state taxes. It was released in December of 2003.

- In April 2003, the state placed yet another lien on Murray for failing …

… serious service cuts to education, police force reductions and even the closing of such essential public buildings such as fire stations.  But after a Chapter 9 bankruptcy, a city will be able to at least stop the financial bleeding and begin on the road to recovery.

Chapter 9 bankruptcy can offer a city the opportunity to significantly reduce their debt and get a fresh start similar to an individual filing a personal bankruptcy.  Usually there have been mistakes made by those running the …