Michigan is investigating why the Detroit Public Schools district received up to $30 million in U.S. Department of Education reimbursements for some employee pensions but didn’t send the money to a state pension fund.

As first reported by the Free Press last week, a report from retired federal judge Steven Rhodes noted the federal government says the district didn’t properly forward between $25 million and $30 million in federal funds to the Michigan Public School Employees Retirement System (MPSERS).

Rhodes was appointed this year to oversee the troubled district. He says the district is negotiating with the U.S. Department of Education to resolve the issue.

Rhodes told the Free Press: “This amount of money … is included in the total amount of (what) DPS owes to MPSERS that will be part of the whole legislative package. Our hope is that when MPSERS gets the money and the Department of Education sees that, they they will drop their claim against us. We have’t worked out those details yet.”

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