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Superintendent warns Prop S victory faces a legal roadblock that could force special election and raise homeowner costs
Summary
Superintendent explained how a recent Treasury Department opinion could require the district to collect an 18-mill operating tax for day-to-day operations once legacy 18-mill debt is paid. The district disputes that view and outlined options including court action, a special May 2025 election, or legislative fixes.
Superintendent Dr. Beatty told the Detroit Public Schools Community District board that a recent opinion from the Michigan Department of Treasury threatens to change how the district may use revenue from the 18-mill levy voters restored under Proposal S.
Dr. Beatty said the district and outside counsel disagree with Treasury’s interpretation, which — Treasury contends — would require DPSCD to revert to taxing an 18-mill operating rate for routine operations as soon as the 18-mill legacy debt is paid. That would mean the district could no longer use 18-mill collections to accelerate repayment of remaining district debts (including capital bonds and the School Loan Revolving Fund termed…
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