Dearborn, Michigan (AP) A Michigan public school district has agreed to pay about $6.7 million to resolve a $15 million debt, as part of a settlement with a federal government agency over the school’s inability to make up for years of mismanagement and neglect.
The school district, which has about 1,100 students, had been under court supervision since March.
The settlement, announced Monday, calls for $2.7 billion to be spent on renovations, modernization and upgrades.
The district’s board of directors voted on Friday to agree to pay the debt.
The Michigan Department of Education says it was notified of the agreement by the Michigan Department for Education, which oversees the state’s public schools.
The $2 million payment was the largest settlement of any of the nearly 40 public school districts that have settled federal investigations into mismanagement.
Officials with the state Department for Public Instruction had said they were working to finalize a $2 billion settlement with the school district.
More than 60 other public school boards in Michigan and around the country have agreed to reimburse the federal government for their costs stemming from the Department of Justice’s probe.
Federal prosecutors in Michigan, Ohio and Pennsylvania have accused the district of failing to meet required financial reporting requirements and not keeping adequate records of expenditures and revenue.
They have accused Dearborn of allowing some of its students to skip school to attend extracurricular activities at the private charter school.