Benton Harbor Area Schools is getting its debts forgiven by the state.
The Michigan House on Thursday approved a supplemental budget bill that eliminates the $12 million in emergency loans that the district owes. State Representative Joey Andrews tells us he worked on the issue to help the district get back on its feet.
“The debt was something that I think many in the community feel the school was unfairly straddled with during an emergency management period, and it’s sort of been an anchor around their neck for the last ten-plus years,” Andrews said. “About a half a million dollars in financing every year goes out the door, money they can’t invest in teacher salaries or facility upgrades.”
Andrews says the district couldn’t issue bonds at a reasonable rate because of all the debt, crippling its ability to improve facilities.
The supplemental budget bill eliminates state debt for six school districts around the state, including Muskegon Heights, Pontiac, Marshall, Ypsilanti, and Inkster.
“It’s kind of hitting the reset button for Benton Harbor and these other schools and saying here’s your chance to do what you need to do, get the schools back on their feet, and try to give them the best shot we can at succeeding”
This eliminates all debt Benton Harbor Area Schools owes the state.
Andrew spoke with officials from Benton Harbor Area Schools after the Thursday vote.
“I spoke with the school board president last night as well as Elnora Gavin of the school board. Both were very excited that this was finally happening, and I heard from several other communities members. Mayor Marcus Muhammad called yesterday, and so I think there’s a lot of excitement and enthusiasm in the community. It’s something that I think a lot of people thought would never happen.”
School board President Dashuna Robinson says the debt elimination by the state “further garners our ability to actualize the district’s mission, vision, and goals.” Superintendent Kelvin Butts says the Legislature’s action is “not just a financial reprieve but a moral support to our entire school community.”
Andrews says the matter now goes on to the governor.
