money matters

New safeguards to be implemented following Detroit district’s $6.5 million snafu

Superintendent Nikolai Vitti's staff is working on safeguards to prevent another error.

A $6.5 million mistake made during schools chief Nikolai Vitti’s transition last summer has prompted a new system for setting deadlines for the Detroit district.

Vitti plans to use the new strategy to prevent missed deadlines like the one the finance department mishandled in August when district staff failed to submit paperwork on time to receive a reimbursement from the state.     

Vitti told Detroit school board members at a public meeting Tuesday night that his staff is working on a plan to put safeguards in place to prevent another costly error.

The mistake isn’t likely to affect the district’s 50,000 students because the money was owed to the old Detroit Public Schools, which was replaced in 2016 by the new Detroit Public Schools Community District. The old district has no schools or students and exists only to pay off debt.

“One thing we are planning to do is create an outline of deadlines … and the board would be made aware of those deadlines,” Vitti said. “That’s one kind of enhancement that would allow the board to monitor the submission of those kinds of documentation.”

The district submitted a request to the state Treasury Department that included legal arguments on why the state reimbursement should still be awarded. The request was made Sunday evening, and the district is now waiting for a response.

Board member LaMar Lemmons asked what response the district would give to former chief financial officer Marios Demetriou, who has vocally denied any blame.

“The former CFO has made allegations that this body has somehow harmed his reputation and I want to know what our posture and response is going to be to that,” Lemmons said.

In an email to the school board on Dec. 18, Vitti blamed the former CFO and his team, Michael Bridges and Delores Brown, for the error.

“The responsibility to submit the paperwork fell on then-CFO Marios Demetriou and two Executive Directors in Finance, Delores Brown and specifically Michael Bridges,” Vitti wrote.

However, Demetriou fired back this week, rejecting any blame for the mistake. He said the deadline was weeks after he had officially resigned, and that the paperwork was never given to him to sign and submit.  

Demetriou, who is now assistant superintendent of finance and operations in the Ann Arbor school district, spoke to the board during the public comment, reading aloud from the letter by Chalkbeat had posted in earlier in the day.

“I hope that they are successful in getting the $6.5 million. It’ll be a shame if they can’t get it,” Demetriou said, after the meeting. “I hope they put all the safeguards that they need to put in place, and I hope they have highly qualified people who know all the deadlines and they abide by them.”

The board also approved a policy that allows the body to change the names of buildings that previously were named after living people, and the district plans to launch its master teacher initiative this week, interviewing and selecting teachers for the 52 open positions.

Urgent repairs

Crumbling Detroit school buildings will cost $500 million to repair. It’s money the district doesn’t have

The water-damaged, mold-infested Palmer Park Preparatory Academy was closed for months while crews replaced the roof and made other repairs.

The buildings in Michigan’s largest school district have been so neglected and so poorly maintained for so long that a new review put the price tag for bringing them up to current standards at half a billion dollars — money the district says it doesn’t have.

“We would have to dramatically cut personnel to even put a dent in this problem,” Superintendent Nikolai Vitti told the school board’s finance committee during a meeting at the district’s Fisher building headquarters Friday morning. “And even then, we would not be able to make substantial improvement.”

The review, whose results one school board member called “tragically awful,” was conducted over the last several months by an architecture and engineering firm called OHM advisors. It assessed the condition of the 106 buildings that currently house district schools, including roofs, interiors, and systems like plumbing and electrical.

It found that nearly a third of school buildings are in an “unsatisfactory” or “poor” condition, while roughly a third are considered in good repair.

The review did not take into account 19 vacant buildings that the district owns and is responsible for securing and maintaining so that they don’t become a danger to the community.

That means that the “unbelievably frustrating” picture painted by the review “undershoots” the problem, said school board member Sonya Mays, the finance committee chairwoman.

What makes the situation even more extreme is the fact that the Detroit district does not have the same ability to borrow money for construction projects that other Michigan districts do.

When the state spent $617 million to create the new Detroit Public Schools Community District in 2016, the new law freed the new district from millions of dollars in debt that had hobbled the old Detroit Public Schools. But it put restrictions on the new district’s ability to borrow money.

Instead, the $617 million included $25 million for buildings improvements — including some pressing repairs that became national news that year when teachers walked out of their classrooms to protest building conditions, shutting down schools for days.

Vitti said much of that $25 million has been spent or is committed this year for projects like the the repair of the roof at the Palmer Park Preparatory Academy, an elementary school that’s been closed for months since a leaky roof triggered a mold problem. Students at the school finished out the school year in a different building. 

“The $25 million is literally a drop in the bucket of what the overall need is,” Vitti told the finance committee.

He called for an urgent discussion to figure out which buildings should be repaired, which ones should be replaced, and which ones should be considered for closure.  

“What we’ve done in this review is at least define the problem,” Vitti said. “Now that we have solid data … we will have to think broadly and deeply” about what to do next.

Options could include returning to Lansing for additional help from the state or partnering with businesses or philanthropy to raise private funds for repairs.

Vitti noted that if nothing is done to repair these buildings, the cost of bringing them up to acceptable standards will swell to $1.2 billion by 2023.

If we don’t make a high level of investment, which frankly we do not have the revenue to do, this problem only compounds itself in the years to come,” Vitti said.

Scroll down to see the presentation Vitti gave to the finance committee, which includes specifics on which schools are most in need of work.

Enrollment push

‘The pressure is on everyone’ as Detroit’s main district advertises to attract more students

PHOTO: Koby Levin
Detroit school board members stand with the students who will star in the district's summer ad campaign.

Detroit’s main school district has a new look.

Officials announced a new brand for the Detroit Public Schools Community District to real-live fanfare on Thursday, unveiling a new logo and tagline with a student brass band as backdrop.

After the announcement was made at Nolan Elementary School, students streamed out wearing blue tee shirts printed with the new logo, which depicts a rising sun.

“Students rise. We all rise,” reads the tagline, signaling that improvement  is coming to a district that is working to recover from decades of disinvestment and mismanagement.  Officials hope the campaign will bring Detroit families back to a district whose future depends in part on increasing enrollment.

That’s a sign of a new reality in public education, one that public relations professionals recognized around the time that policy shifts nationwide allowed more charter schools to open.

When school competition spread nationally, the phenomenon was especially pronounced in Michigan, where parents can enroll their children in charter schools or suburban schools that will accept them. State law puts few restrictions on where charter schools can be opened and who can open them.

Superintendent Nikolai Vitti said the re-branding effort was inevitable in a state that fosters competition between school districts.  Vitti has criticized Michigan’s charter school laws, but has charged head-on into the battle to enroll students nonetheless.

“I think the pressure is on everyone,” Vitti said. “Students can move from one district to another. It’s incumbent on every school district and every school to go into a marketing mode.”

The district paid $100,000 for the $300,000 campaign, which was put together by BLVD Content and Real Integrated, marketing and strategy firms that have worked for Ford, the City of Detroit, The Henry Ford, and the Detroit Opera Theater. The firms donated about $180,000 worth of work, the district said, with the non-profit United Way chipping in about $20,000 through the Detroit Public Schools Foundation. The brand includes television commercials and a new logo and tagline.

PHOTO: Koby Levin
Detroit’s main district has a new logo.

This is not the first time Detroit’s main district has used advertising to attract students. In 2010, the “I’m in” campaign won a top national marketing award. The old Detroit school district, which now exists only to pay off legacy debt, reported that 830 students enrolled as a result.

Nora Carr, former president of the National Association of School Public Relations, says schools are “borrowing a page from the private sector” by investing in brands. “Rarely mentioned a decade ago, branding is becoming part of the educational lexicon,” she wrote in a 2009 article.

While enrollment in Detroit’s main district has declined, it remains the largest in the state. That makes it easier to raise funds, but harder to implement a brand widely enough that it will become ingrained in parents’ perception of the district.

Many charter schools in the city are far smaller. Take The Detroit Achievement Academy, a 200-student charter school on the city’s northwest side. Kyle Smitley, the school’s founder, said in a text that she does the branding herself. “We don’t pay anyone externally,” she added.

District officials say the brand projects “a new beginning for traditional public education in Detroit.” His administration has set lofty academic goals, which it hopes to reach through an overhauled curriculum, but it remains too early to judge whether these efforts will move the district forward.

Boosting enrollment is a crucial piece of the puzzle. A plan unveiled earlier this month called for commercials on television, billboards and buses, part of an effort to bring back some of the roughly 30,000 students who wake up every day in the city and go to school in the suburbs.

The commercials will be based on a promotional video, also released Thursday, in which rapper Big Sean, a graduate of Cass Technical High School, speaks over images of actual Detroit students playing sports and studying. They build on a tradition of commercials that emphasize Detroit’s hard-knock reputation, with the rapper dropping lines like “we are a city that runs on ambition and grit.”

The video and other advertising materials can be seen on the district’s website.

Correction: An earlier version of this story misstated the size of the contribution from United Way. The non-profit contributed $20,000 to the branding campaign.