All school administrators and teachers employed by the city of Detroit are being laid off. Layoff notices were recently sent out by the city. There could be some pending deals, but unless significant fiscal problems are resolved, no teacher in Detroit may have a job as of July 29. A 3rd of Detroit is uninhabited, and people have been leaving in droves. Source for this article - Severe budget problems could get all Detroit teachers laid off by MoneyBlogNewz.
Debt in Motor City schools even higher
CNN states that every teacher and school administrator is being laid off in Detroit, Mich., in the public school system due to financial problems. To raise over $230 million to stay alive through August of the year, the Detroit School District issued emergency bonds in March while continuing to have its $327 million deficit. Drastic measures were required since the district was able to raise half a year's budget, although it was not enough. Staff salaries were terminated first. All 5,714 teachers in Detroit are receiving layoff notices as well as all school administrators. July 29 will be the end of teachers in Detroit. The city will no longer be paying for it.
Leaving the city alone
Detroit, once a sprawling metropolis and industrial powerhouse, has been losing individuals steadily for more than a decade. There are now the same numbers of people in Detroit as there was in 1910 as 25 percent of the population left in just the last 10 years. A third of the city, according to MSNBC, sits vacant. There were 10,000 fewer students in the school district as there was in 2001. The Detroit School District realized it was in a crisis in March when the Public Act 4 got passed by Michigan legislature. Now, state and local government hire financial managers to get some power. Robert Bobb is the emergency financial manager for the public schools in Detroit. As an emergency measure, he is using the law now.
Not many will lose their jobs
Everybody that got a layoff won't be fired. Some will get to continue working. The financial manager Bobb is simply redoing all the Detroit schools. They will revolve around enrollment instead now. The collective bargaining between Detroit and the Detroit Federation of Teachers may also be redone by him. In 2009, an agreement comparable to this was made where teachers lost salaries and health benefits. Several suspect this same thing will take place. Reuters states that a state takeover is also possible. This is assuming Detroit can't get things under control. Detroit already has a $155 million deficit, which could grow to $1.2 billion by the fiscal year of 2015, which begins in July 2014. The city could end up with an emergency financial manager taking over, assigned by the state. This is just like the Detroit schools being taken over by Bobb.
Citations
CNN
http://
money.cnn.com/2011/04/15/news/economy/detroit_teachers/index.htm
MSNBC
http://
msnbc.msn.com/id/42612424/ns/us_news-life/
Reuters
http://
reuters.com/article/2011/04/12/us-detroit-budget-idUSTRE73B5GT20110412
