Michigan final government agency released from financial receivership


MUSKEGON HEIGHTS, Mich. (WJRT) – For the first time in more than a decade, no government agency in Michigan is subject to state financial oversight.

Gov. Gretchen Whitmer released the Muskegon Heights school district from receivership and dissolved its transitional advisory board into receivership on Monday. These actions allow the public school district to regain full local control without state oversight.

The school district was Michigan’s last government agency under state financial control.

“Today is a new day for the Muskegon Heights School District and the state of Michigan,” Whitmer said. “The efforts of the school district and the community to identify the problems and muster the resources necessary to solve complex financial problems are to be commended. I am proud to say that we no longer have a school district or community under state watch. “

The Muskegon Heights School Board requested an emergency manager in December 2011 and the administration of former Governor Rick Snyder agreed in January. All K-12 Muskegon Heights schools have been operating as charter schools since 2012 and will continue to be charter schools until long term debts are paid off.

The Michigan Department of Education will also continue a partnership agreement with Muskegon Heights schools to work on improving educational outcomes.

Whitmer said the district currently has a general fund balance of over $ 650,000, which represents 46% of annual revenues. The district has increased its savings for three consecutive years while staying up to date on retirement and debt obligations.

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