Detroit School Selling $337 Million As Upgrades and Budget Cuts Loom

Carvlin, Elizabeth
April 2003
Bond Buyer;4/22/2003, Vol. 344 Issue 31619, p4
Trade Publication
The Detroit, Michigan Public Schools will complete the sale of bonds approved under a $1.5 billion bond authorization on April 23, 2003 with the sale of $337 million of unlimited tax general obligation bonds.The bonds will carry insurance from Financial Guarantee Insurance Co. The bonds also carry the state's top bond rating under the qualified school bond loan fund. The Michigan school bond loan fund is one of the strongest in the country, with a constitutional guarantee that the state will step in to pay bonds should the district default, said Moody's Corp. analyst Nicole Johnson. In the past several years, the district, under the management of chief executive officer Kenneth Burnley, has been trying to complete the sale of $1.5 billion of debt that voters authorized in 1994, said Robert Moore, the district's senior deputy chief executive officer. The district is awaiting the state's May 13 revenue-estimating conference to learn how state revenues may affect the schools. Some legislators have introduced a bill to return the district to an elected school board, but Moore said the same effort has failed in the past.


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