Traverse City Record-Eagle

Michigan

February 1, 2012

Muskegon Hgts. schools get review team

MUSKEGON HEIGHTS — A state review team will look into the finances of Muskegon Heights Public Schools.

Gov. Rick Snyder appointed the review team Tuesday under Public Act 4. A preliminary review found "probable financial stress" in the western Michigan school district.

The district requested the preliminary review in December.

Muskegon Heights schools have a current year budget deficit of $8.5 million and have had a deficit for three or more years in a row. The state said the district projects to remain in a deficit through the 2015 fiscal year.

A review team will decide if no or mild financial stress exists in the district; if there is severe financial stress; or if there is a financial emergency. The findings could lead to the appointment of an emergency manager.

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