DETROIT, Michigan - January 12. 2011 - Detroit Public Schools would close nearly half of its schools in the next two years, and increase high school class sizes to 62 by the following year, under a deficit-reduction plan filed with the state.

The plan, part of a monthly update Emergency Financial Manager Robert Bobb gives the Department of Education, was filed late Monday to provide insight into Bobb's progress in his attempt to slash a $327 million deficit in the district to zero over the next several years. Under it, the district would slim down from 142 schools now to 72 during 2012-13.

Bobb has said school closures, bigger classes and other measures would be needed if he cannot get help from lawmakers to restructure finances in the state's largest school district.

DPS considered but declined to file for bankruptcy in 2009. In the past year, debt in the district has increased by more than $100 million, brought on by a mix of revenue declines in property taxes, reduced state aid, declining enrollment and an unplanned staffing surge this past fall.

Starting this fall, the district plans to boost class sizes in grades 4-12 and at all grade levels by fiscal 2012, which begins July 1, to save $16.8 million. The plan would hike class sizes for: Grades K-3 from 17-25 students to 29 in 2012-13 and 31 in 2013-14.