Report: Detroit Schools Kept Millions Intended For Pensions
DETROIT (WWJ/AP) - Michigan is investigating why the Detroit Public Schools district received up to $30 million in U.S. Department of Education reimbursements for some employee pensions but didn't send the money to a state pension fund.
A report from retired federal judge Steven Rhodes noted the federal government says the district didn't properly forward between $25 million and $30 million in federal funds to the Michigan Public School Employees Retirement System, according to The Detroit News.
Rhodes was appointed this year to oversee the troubled district. He says the district is negotiating with the U.S. Department of Education to resolve the issue.
Michigan Department of Education spokesman Martin Ackley says the district in December discovered and reported that it had not properly forwarded funding.
Ackley says an audit is being conducted.
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