Detroit Schools Demand Justice: Fight to Use Millage Revenue for Debt Relief Hinges on State Action

Detroit’s public school district is standing at a critical crossroads, grappling with decades of financial mismanagement and an uncertain path forward. The Detroit Public Schools Community District (DPSCD) is considering legal action against the state of Michigan to ensure the revenue from its 18-mill operating millage can be used to pay off all of its remaining debt—a significant burden the district incurred under state control. At the heart of this fight is the future of Detroit’s schoolchildren and the families that have long borne the brunt of disinvestment and mismanagement. Superintendent Nikolai Vitti didn’t mince words at Tuesday’s school board meeting. He shared that the Michigan Department of Treasury has ruled the revenue from the operating millage can only be used to pay off the district’s operating debt, which will be eliminated by March 2025. However, that narrow interpretation leaves the district with $348 million still owed to the state’s School Loan Revolving Fund and another $1.4 billion in capital debt. Much of this debt was accrued during a period when the state controlled Detroit’s public schools. Yet, the district’s ability to use millage revenue to tackle the debt remains tangled in bureaucratic red tape. This financial puzzle stems from...