In an attack on the bill that would allow more charter online cyber schools, the American Federation of Teachers Michigan union claims that a private company that provides curriculum for charter cyber schools made $522 million in profits in 2011.

In fact, K12 Inc. had total revenues — not profits — of $522.5 million, and a net income of $12.8 million, according to MarketWatch.

“They are just confusing revenues for profits,” said Michael Van Beek, education policy director at the Mackinac Center for Public Policy. “It blows up their argument that this company is going to make hundreds of millions of dollars in operating these schools.”

Louise Somalski, legislative coordinator for the AFT-Michigan didn’t return messages left at her office.

Senate Bill 619 was passed by the Senate with a 20-18 vote on Oct. 27 and expanded the number of cyber schools available. Cyber schools are also called virtual schools that provide education over the Internet. Last month, the State House passed SB 619 by a 56-54 vote. The bill will be sent back to the Senate for a concurrence vote. Then it would go to Gov. Rick Snyder to be signed into law.

The AFT also says that the bill creates a limit of 900,000 students over 30 cyber schools in two years, which could drain $7.2 billion from the School Aid Fund. The bill passed by the State House was amended to have a statewide cap of 32,000 students in five years.

“One thing that’s odd is that AFT fails to understand that lifting the cap does not force any student to enroll in these types of schools,” Van Beek said. “They only do so by choice and only if they feel they’re a better option than the school they’re assigned by the state. Why would AFT assume that hundreds of thousands of families would opt out of the regular brick-and-mortar schools they currently attend?”

Allen Park City Manager John Zech says if a tax increase isn't approved by voters today, the city will likely have to get an emergency manager.

Zech says a 4-mill, 2-year tax increase to pay for $28 million it borrowed to buy land for a failed movie studio is much needed. The city also borrowed $2 million against next year’s tax revenue and is asking for another $2 million from the state of Michigan in an emergency loan, Zech said.

If the state doesn’t loan the city money, Zech said the city would try to sell “fiscal stabilization bonds” so it can pay off operating expenses.

But one resident said he’s not happy with the city’s solutions to its economic woes.

“The new administration thinks they can borrow their way out of debt,” said Tim O’Brien. “What they have done is just outrageous.”

O’Brien and supporters will be out today collecting signatures for a petition to amend the city’s charter so Allen Park would have to get voter approval for loans.

Zech said the city is taking money from its general fund to pay for the studio debt but still needs the millage increase to pass.

“If it doesn’t, I’m sure the governor will send somebody in,” he said.

Anthony Minghine, chief operating officer of the Michigan Municipal League, said it’s rare for a city to ask for a loan to cover operating expenses, which is what Allen Park would be doing if it sold fiscal stabilization bonds.

“You wouldn’t expect to see people borrowing for operating costs. You would expect to see those costs met with the resources you have available,” Minghine said. “It’s a tool you use if find yourself in severe economic circumstances. Cities as a rule don’t do that.”

Zech said although the studio was a “principal reason” for the financial crisis, he said the city has overspent in other areas over the years.

The city also has a community center that includes a hockey rink that has run about $300,000 to $400,000 a year in the red, Zech said.

Michael LaFaive, a fiscal policy analyst with the Mackinac Center for Public Policy, said such entertainment centers ultimately redirect money from core services.

“Running entertainment centers are not core to a government’s mission,” LaFaive said. “Allen Park and other cities should apply a 'Yellow Pages’ test to its services. If it is, or can be provided privately, it should be. People may enjoy these services very much; that is a reason to keep them private.”