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 a 2016 legislative overhaul meant to address the deep debt crisis in Detroit Public Schools (DPS). The plan created a new district, DPSCD, to operate the schools and receive funding directly from the state’s school aid fund. Meanwhile, the original DPS remained intact for one purpose: to collect millage revenue and pay off existing debt. Today, DPSCD officials are making a strong case that state law requires the operating millage to pay off all of the district’s debt—not just its operating obligations.
“That would mean that DPSCD would be debt free by 2031 and dramatically reduce the amount of money that the average Detroit homeowner would have to pay, basically, in paying off interest from emergency management and DPS debt,” Vitti explained during the meeting. That debt burden, which stems largely from state oversight, has left Detroit families footing the bill for past failures while students learn in outdated, deteriorating facilities.
Earlier that day, lawmakers in the House Education Committee took a step forward. They approved a bill introduced by Representative Regina Weiss, a Democrat from Oak Park, that would clarify the law. The bill aims to expand the definition of “operating obligations” to include debts owed to the state’s revolving loan fund. That change would allow DPS to use its millage revenue to pay down the remaining $348 million. Weiss made clear why this legislative fix matters: without it, DPSCD won’t be able to generate the money needed to tackle dire building needs until around 2040.
“These crumbling facilities are often not only unconducive to learning, but are often unsafe,” Weiss said. A former teacher in the district, Weiss brought firsthand experience to the hearing. “I’ve taught in buildings infested with rats, cockroaches, and mold, with crumbling roofs.” Her voice carried the weight of someone who has seen Detroit’s students forced to learn in conditions that no child should endure.
The district has dedicated $700 million in federal COVID-19 relief funds to begin addressing those facility needs. But without the ability to use the millage to pay down the debt, Vitti warned that progress could stall. “The district has taken a lot of steps to improve the massive facility needs, but without this fix, we will slow down this imperative progress, and if we don’t fix it, unfortunately, it is the children of Detroit who will suffer,” Weiss said.
For years, Detroit’s schools have been caught in cycles of systemic neglect and disinvestment. The damage is not just financial; it is a generational wound. The buildings that should inspire hope and possibility for Detroit’s students instead remind families of promises unkept. That reality sits at the heart of why this legislative fix—or a court ruling—is so important.
The House Education Committee voted to move the bill forward, with all Democratic members in support. Four Republican committee members voted against it, though they did not publicly explain their opposition. The bill must still pass the full House and Senate before it can be signed into law—a tall order as Democratic lawmakers face a shrinking window to push through their legislative agenda before the year ends.
If the legislation does not pass, the district’s next option may be a legal battle in the Michigan Court of Claims. Vitti said Tuesday that the district could file suit to clarify its legal standing, similar to how the state handled the dissolution of Inkster Public Schools. While legal action may provide clarity, the district’s ability to pursue this path is limited. Michigan law prohibits school districts from using state funds to sue the state. That means DPSCD would need alternative funding or legal support to pursue its case.
Another possibility would be to ask Detroit voters to approve an additional millage in a special election next May. Vitti noted that a special election could also be pushed back to May 2026, delaying any resolution even further.
This financial dispute is tied to the broader structure of how Detroit’s schools are financed. The 2016 restructuring gave DPSCD a “debt-free” start, relying solely on per-pupil funding from the state. Other districts, by contrast, use a mix of state funding and local property taxes. Detroit’s old debts remained with DPS, which now collects the 18-mill operating millage to pay them down. Once that debt is eliminated, DPS will cease to exist, and DPSCD will transition back to the mixed funding model used by other districts.
Detroiters took an important step last November by approving Proposal S, which allows DPS to levy the full 18 mills on non-homestead property. Previously, state law capped the millage at 16.6 mills due to rising taxable values in the city. That adjustment is expected to speed up the district’s debt repayment, generating roughly $111.2 million annually—or about $2,460 per student. As Detroit’s property values continue to rise, that revenue is projected to grow, offering a glimmer of hope for long-term stability.
Vitti emphasized that millage revenue remains one of the few sources the district can use to pay for teacher salaries, facility improvements, and essential costs like transportation. Federal and state grants, by contrast, come with restrictions that limit how funds can be used.
The path forward remains unclear, but the stakes could not be higher. Detroit’s public schools are a lifeline for tens of thousands of children, yet decades of neglect and mismanagement have left deep scars. The district’s fight to use its millage revenue to address the full scope of its debt is about more than just numbers on a spreadsheet. It is about restoring equity, accountability, and dignity for a community that has been asked to wait too long for justice.
Detroit’s children deserve safe, inspiring places to learn. They deserve the same opportunities as students in other districts. This moment—whether resolved through legislation or the courts—is an opportunity to move closer to that vision. Detroit families, already burdened by a history of broken promises, are watching closely.
Photo: courtesy photo
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