Records: Detroit Public Schools $53 Million Behind On Pension Payments
DETROIT (WWJ/AP) - State records show Detroit Public Schools is $53 million behind in pension payments, costing the cash-strapped district $7,600 a day in interest penalties.
Based on its minimal payments, the district would be $81 million behind in mandatory pension contributions by July 1, according to the Detroit News. That cost is further exacerbated by $78,000 in fees for each month the district remains delinquent.
The sporadic pension payments date back to October 2010. The district has a projected deficit of roughly $166 million this year -- $40.6 million more than originally expected.
State-appointed emergency manager Darnell Earley says he expects revenue to continue to decline next year and enrollment to decline.
The governor's office is expected to soon get recommendations for changes in the district from the Coalition for the Future of Detroit Schoolchildren.
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