- Associated Press - Monday, July 7, 2014

DETROIT (AP) - A federal appeals court says a lower court should have allowed a former Detroit Public Schools executive’s claim that she was fired because she reported the troubled district had been operating under a budget deficit.

The U.S. Appeals Court in Cincinnati says ex-Chief Financial Officer Joan McCray “offered direct evidence that her reports of financial shortfalls” motivated her firing, in violation of Michigan’s whistleblowers protection act.

McCray told the board in 2008 the district faced a $400 million deficit and presented a deficit elimination plan that would lead to state oversight.

The state later announced an emergency manager would be appointed. The board then voted to fire McCray.

The district remains under state oversight.

McCray’s lawsuit has been ordered back to federal court in Detroit.

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