Ex-U.S. education official named emergency manager of Highland Park Schools

Highland Park— An emergency manager will take over Highland Park Schools, Gov. Rick Snyder announced Friday, making the troubled school system the second district in Michigan to have a state-appointed manager during a financial crisis.

Snyder appointed Jack Martin as emergency manager, effective Monday. Martin, a certified public accountant, is founder and chairman of Martin, Arrington, Desai & Meyers, P.C., and was chief financial officer for the U.S. Department of Education from January 2002 through December 2005.

Martin was a finalist for the emergency manager job for Detroit Public Schools in 2009 and is a current member of the team charged with reviewing Detroit's finances for the governor.

"Jack Martin has more than four decades of experience in both the public and private sectors, and has earned tremendous respect throughout his career," Snyder said. "Given his understanding of the critical importance of education and his background as a CPA, I'm confident Mr. Martin is well-suited for this post, and will work quickly and efficiently to address the financial emergency faced by Highland Park Schools."

Snyder made the final decision on the issue after a state-appointed review team and the treasury department both told the governor that a financial emergency exists in the school district, where enrollment has plummeted and the deficit has more than doubled in the last year.

School board president John Holloway learned the news Friday afternoon from Superintendent Edith Hightower.

"His credentials — they do appear to be impeccable," Holloway said. "Based upon his past experience with the U.S. Department of Education — that's kind of sobering. At least he understands the nature of the business. We are looking forward to him coming."

Hightower said informational meetings for parents will be held Monday through Wednesday at 5:30 p.m.

David Hecker, president of the American Federation of Teachers-Michigan, said the union and its locals at the district want what is good for students and fair for teachers and staff.

"With the appointment of Jack Martin as emergency manager, we are committed to working with him to achieve these goals. Our hope is that Jack Martin works collaboratively with teachers, staff and the community as everyone has a stake in ensuring that the students of Highland Park are our top priority," Hecker said in a statement Friday.

Last week, the governor sent a letter to parents and residents in the district, telling them the district was in jeopardy of closing next month without immediate action. Snyder and state officials have said they want students to be able to finish the school year there, but the district doesn't have enough money to operate past Feb. 14.

Highland Park Schools officials have been fighting the prospect of a state takeover. Last week, they asked the state to send its review team back to collect more data and reconsider their decision.

On Friday, board secretary Robert Davis said he "looks forward to having a dialogue" with Martin. At the same time, Davis said he will file a legal challenge to the governor's appointment on Monday.

"It will be short lived," Davis said of the appointment after consulting with his attorneys. "I don't believe the governor, the state superintendent or the treasurer will be able to legally sustain the decision."

Legal challenges have been filed across the state to Public Act 4, an amended state law that allows the governor to appoint an emergency manager to run financially troubled municipalities and school districts. Detroit Public Schools has been under an EM since 2009.

Once appointed, emergency managers have the full authority of the state to make financial decisions and amend or cancel contracts, including collective bargaining agreements. The arrangement leaves elected school board members essentially powerless, but still in place.

Asked what Martin can do for the district, Holloway said, "He can do all the things that we cannot do… have a balanced budget, eliminate the deficit."

The decision to appoint an EM left Holloway uncertain as to what his role of the elected school board would be from here on out.

"Why would the board be meeting? We don't know where we are to proceed from here. The state doesn't have template as to proceed. We don't know what role we will have," Holloway said.

On Jan. 2, a review team recommended to Snyder that an emergency manager be installed to take over the district's finances. Snyder declared a financial emergency Jan. 13, the same day the state advanced $188,000 to the district to make payroll through Feb. 14.

The district's deficit has increased from $6.6 million to $11.3 million over the past fiscal year. Two weeks ago, the district told state Treasurer Andy Dillon it needed an extra $3.4 million — on top of $4.2 million it got in August — to get through the rest of the school year.

The district's enrollment has decreased by 58 percent since 2006, dropping from 3,179 pupils to 1,331 for 2010-11. Current estimates show a pupil count of 969.

In his announcement, Snyder said as emergency manager, Martin will develop and maintain ongoing communications with school district officials, parents of Highland Park students, members of the community, and the media.

Highland Park Schools teacher Michelle Miller said teachers have been working hard and long for students, suffering pay cuts and a lack of supplies.

"We know the children. We know the neighborhood. We know the challenges. We can't imagine what would happen if it closes. It takes a real experienced staff to run this school," Miller said in her classroom, before the decision was announced.

jchambers@detnews.com

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