DISCUSSION ON EARLY WARNING BEGINS

The Michigan Legislature recently considered legislation concerning "distressed schools" and creating a process to establish an "early warning system," to avoid state intervention due to financial stress.

Currently there are  48 distressed schools or districts at risk of financial disstress in Michigan. Some districts have a short-term hiccup, while others face long-term issues, such as continued declining enrollments and increased labor costs.  According to Gongwer, the multi-bill package proscribes measures for financially distressed school districts—with advocates noting—doubles the maximum amount the Emergency Financial Assistance Loan Board is authorized to lend troubled districts, revises the loan’s eligibility criteria, eliminates restrictions on the Board’s ability to restructure existing loan repayment programs and removes limitations on the amount of surplus funds that can be loaned to municipalities and school districts over the next six fiscal years.

A number of school officials are opposed to the legislation, arguing that some of the measures’ reporting requirements and criteria are burdensome and possibly redundant, and would actually add to the district’s financial woes.  However, those same school officials should work with a facilitator to engage stakeholders in defining the problem and working in advance of the state stepping in to identify and implement realistic solutions.

By being proactive and engaging your community early on, you can avoid difficult situations down the road. However, acknowledging the problem and engaging others in the solution is a difficult process, one that can be helped by brining in a neutral to guide the discussion and help extract solutions.  

Daniel Cherrin

DANIEL CHERRIN |served the City of Detroit as its Communications Director and the Press Secretary to Detroit Mayor, Ken Cockrel, Jr. He is a public relations + affairs specialist who just happens to be a lawyer, with 20 years of experience providing senior public relations and government relations’ counsel to organizations on state and federal regulatory and legislative matters, as well as issues affecting corporate and individual reputation, crisis management and the media. Daniel is the founder of NORTH COAST STRATEGIES (Est. 2005) an independent public relations consultancy that combines the best of a big agency with hands-on executive-level experience and support. As a signatory company to the United Nations Global Compact, we are dedicated to addressing issues around human rights, labor, the environment, and anti-corruption. We are also focused on redefining your brand and changing the conversation to create an impact.