From The Detroit News: Detroit Public Schools officials may ask the state of Michigan to forgive its $332 million deficit as part of a plan that could reshape the district. District officials plan to present a proposal to Gov. Jennifer Granholm that calls for wiping out the debt and transforming the school system modeled on President Barack Obama's "Race to the Top" program. They could include giving principals more authority and extending the school day and year. The alternative, the district says, is steep cuts, including building closures, teacher layoffs and reductions in bus service, to achieve a zero balance by 2014, as required by state law.