He said the question of state oversight was "no doubt negotiable at this point."
Still, its debt remains the biggest question mark for the county budget, which is under special state oversight because of past mismanagement.
The city government, on the verge of its own collapse a few years back, is also being run with state oversight.
The state oversight promises to address the most glaring management issues.
It went under state oversight in 2002 because of years of low student test scores and poor financial management.
The state's 57 reporting private schools, attended by 1,000 students, are subject to virtually no state oversight.
Parents and teachers do not object to some state oversight, but want to know what it means for the classrooms.
It was placed under state oversight in 1995 because of financial problems and poor student performance.
Since then, several children have died while under state oversight.
City motor vehicle laws are subject to state oversight, and such consent would be required.