(State of Michigan Department of Treasury, Oct. 18, 2018)
Pontiac, Auburn Hills, Sylvan Lake, Bloomfield Twp, Orion Twp, Waterford Twp, and West Bloomfield Twp, MI. – State Treasurer Nick Khouri announced that the Pontiac School District has been released from its Consent Agreement under the Local Financial Stability and Choice Act.
On Friday, Oct. 12, the school district was released from the agreement’s terms and now manages all operations and finances without state financial oversight.
“I am pleased to see the progress the Pontiac School District has made under the Consent Agreement,” Khouri said. “This process is an example of how different governmental partners can share resources to improve finances and services.”
Under the Consent Agreement, the school district adopted and implemented a financial and operating plan to provide for greater financial stability, including entering into an agreement with Oakland Schools for business administration and information technology services to enable the school district to better provide public educational services to residents.
Additionally, the school district regularly adopted balanced budgets, including recently for the 2018-2019 fiscal year.
“The financial success that is now being experienced at the Pontiac School District is a direct result of hard work and great collaboration between the state and the district,” Gov. Rick Snyder said. “The goal has always been to get finances back on track to restore local control and this marks the accomplishment of that goal. Pontiac is a vital part of Michigan’s strong comeback and the future of this district now looks much brighter.”
While the Pontiac School District has been released from the Consent Agreement and the Local Financial Stability and Choice Act, the school district continues to follow its State of Michigan Emergency Loan Agreement. Resolution of the financial emergency was assisted by a state emergency loan.
In May 2013, the State Superintendent of Public Instruction concluded and reported to the Local Emergency Financial Assistance Loan Board that probable financial stress existed and recommended the appointment of a Financial Review Team.
Later that year, a Financial Review Team concluded a financial emergency existed in the Pontiac School District and Gov. Rick Snyder agreed with the team’s findings.
In September 2013, the state of Michigan and Pontiac School District entered into a Consent Agreement to address a financial emergency. The agreement represented a collaborative effort to assist in restoring the fiscal accountability while also ensuring the school district would provide a quality public education to residents.
“This five-year partnership with the state Treasury Department has gotten the school district stable enough to sustain operations,” said Pontiac School District Superintendent Kelley Williams. “We have shown growth academically and have shown fiscal responsibility with the passing of audits and a boost in our school district’s credit rating.”