Michigan Governor Rick Snyder has 10 days to act on Benton Harbo - Fox 28: South Bend, Elkhart IN News, Weather, Sports

Michigan Governor Rick Snyder has 10 days to act on Benton Harbor Schools financial crisis

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An independent review team says Benton Harbor Schools are in a financial crisis and Governor Rick Snyder must act quickly on deciding their fate. The Michigan Treasury Department issued a news release this afternoon about the report. 

It says that the financial crisis was reached because of a number of issues including a deficit of $15.5 million dollars at the end of  June of 2013, despite a $2 million dollar emergency loan from the state. The review committee also found that school district officials exceeded permitted budget expenditures, and that the district was more than six months late in paying various vendors.

According to state law, the governor has 10 days to review the team's report and determine what will happen. According to the Michigan Director of the Office of State Aid and School Finance, Dan Hanrahan, the district could opt to declare bankruptcy, agree to mediation, sign a consent agreement for state supervision, or appoint an emergency manager of schools in lieu of the elected school board.

 According to the release, the review team was appointed in late June. They conducted several meetings to consider the district’s finances and interviewed school administrators, department heads and union leaders among others before submitting their report.

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