"In June 2016, the newly reconstituted Detroit public school district received a $617 million bailout from the Michigan Legislature, wiping some $415 million in accumulated debt from its books.
The full bailout amount included a projected interest expense and an additional $150 million grant to the district for so-called transition costs.
But by the end of that same year, the “new” school district
- had to leave 300 vacant positions unfilled,
- sell $10 million in property,
- and use a one-time transfer of $15.7 million left on the “old” district’s books
to keep from racking up another round of deficits and debt..."