Increased School Funding Did Not Slow Districts In Deficit

But 10 districts expected to exit deficit status this year

State Supt. Flanagan

Media outlets across the state have pounced on a comment by State Superintendent Mike Flanagan, who said this week there are a record 55 school districts now in deficit.

But downplayed in much of the reporting is that 10 school districts are projected to come out of deficit, which if confirmed in November by audits, would mean there actually are four fewer districts in deficit in 2012-13 than the previous year.

Michigan had 49 districts in deficit in 2011-12.

Michigan Department of Education Spokeswoman Jan Ellis said this was the first year that the state did forecasts on deficits.

"The reality is we won't know the bottom line until Nov. 15 when we get all the audited information in," Ellis said. "These numbers continue to evolve."

The number of school districts in deficit increased the most under then-Gov. Jennifer Granholm. During Gov. Granholm's tenure, the state foundation allowance increased six consecutive years from 2002-03 to 2008-09, but the number of schools in deficit increased from 10 in 2002-03 to 41 in 2008-09.

Stay Engaged

Receive our weekly emails!


See also:

School Districts With Continual Deficits Still Handing Out Raises

Loss of Funding Not To Blame For School District Failures

Slight Reducation In Education Funding Did Not Lead To Doomsday Predictions

Survey Says ... School Union Contracts Contribute To Deficits

Teacher Layoffs Not Caused By Lack of Cash

Reality Check: Who Is To Blame For School Deficits?

Michigan School Districts In 'Perpetual' Funding Crisis

Related Articles:

Panic Over: Number of School Districts in Deficit Plummets

A Forced Marriage to Intermediate School Districts

Fewer School Districts Borrowing to Cover Expenses, But Pension Debt Rising

Number of Public School Districts in Debt At Six-Year Low

More School Districts Paying Their Bills Without Debt

Most Michigan School Districts Privatize Services

Stay Engaged

Simply enter your email below to receive our weekly email:


A “bottlenecker” is someone who uses the power of the government to limit competition in the market and artificially boost their own profits. Bottleneckers use a variety of methods to achieve their goals, including tax loopholes, regulations, occupational licensing requirements, minimum wage laws and many more. The end result when these special interest bottleneckers succeed is fewer choices and higher prices for consumers, fewer job opportunities for workers and less innovation throughout the economy.

Related Sites