- JANUARY 15, 2011
The city may abandon half its schools to pay union benefits.
- Detroit was once America’s fourth largest city, though today large sections of its inner core are abandoned to the elements, and monuments like Michigan Central Station are returning to dust. Another emblem of civic decline is a plan to desert nearly half of Detroit’s public schools so that it can afford to fulfill its teachers union contract.
The school district is facing a $327 million deficit and has already closed 59 schools over the last two years to avoid paying maintenance, utility and operating costs. Under a worst-case scenario released this week by Robert Bobb, an emergency financial manager appointed by the state to resolve the Detroit education fisc, the district will close another 70 of its remaining 142 schools to save $31.3 million through 2013.
“Additional savings of approximately $12.4 million can be achieved from school closures if the District simply abandons the closed buildings,” the proposal explains, purging costs like boarding up buildings, storage and security patrols.
Steven Wasko, a spokesman for Mr. Bobb, said that urban property sales have been difficult, in part because until recently the state board of education banned transactions with “competing educational institutions” like charter schools. Once buildings are deserted, even if the doors and windows are welded shut with protective metal covers, scavengers break in and dismantle them for copper wire, pipes and so on.
Under the emergency plan, consolidated high-school class sizes would increase to 62 by 2014, “consistent with what students would expect in large university settings.” Yet under the terms of the Detroit Federation of Teachers contract, the district must pay bonuses for class enrollment over 35, thus imposing some $11.1 million in new costs through 2014.
Note that this dispensation carries about the same price tag as the school abandonment windfall: In other words, Detroit may end up destroying serviceable capital assets so it can pay its public workers more over the short term.
Mr. Wasko cautions that the school closure plan is a last resort, and Mr. Bobb has floated other ideas, including a financial restructuring similar to the GM bailout/bankruptcy. Detroit Federation of Teachers president Keith Johnson rejected even that because “The children of Detroit are not consumed products of a profit-driven corporation like a car,” as he wrote in an op-ed this week. Maybe his real objection is that the GM model might allow the district to rationalize its labor liabilities.
The budget gap is party due to the property tax revenue collapse as the Motor City crumbles, as well as financial mismanagement and a surge in pay and benefits for public employees. The Mackinac Center, a state think tank, reports that average Michigan teacher salaries outpaced those of all other states from 2003 to 2009, when adjusted for state per capita income as a proxy for the local ability to pay.
It’s hard to think of a sadder commentary on a government so fiscally desperate and so captured by its workers that it may be forced to abandon property to thieves. But are they the scavengers or the union?
