The Pontiac school district took a step this week that may put the school system on the road to a state-appointed emergency manager, the Huffington Post reports. The Michigan Department of Education will launch a preliminary financial review, the first step under the emergency manager appointment process outlined in Public Act 4. The district has a $24.5 million deficit, and the MDE withheld its $1.25 million monthly state aid payment in April, according to the Oakland Press. MDE spokeswoman Jan Ellis said the state is required by law to withhold payment until an approved Deficit Elimination Plan is in place. According to MLive, Interim Superintendent Dr. Walter Burt said the money, which has not yet been released, was withheld because the state questioned the progress the district has made on cutting its budget

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