DETROIT, MI -- Corruption has no place in Detroit schools under transition manager Steven Rhodes, a retired federal bankruptcy judge who says more investigations are under way.

Thirteen educators already face charges this year in a $2.7 million kickback scheme following a multi-year investigation.

Now the district, under Rhodes, is setting up a system to expose corruption, he said, "and it would not surprise me at all if more comes out."

He continued: "The first job is to continue to work with authorities to bring these people to justice. Second, we have to do what we can to prevent it from happening again."

Michigan is making significant investments into education in the state's largest city: It will spend about $739 million on public education in Detroit this year, with just over half of that going to public charter schools. And state government appears prepared to pass bills sending $617 million to the Detroit Public Schools to erase long-term debt and create a new district.

Steven Rhodes, former bankruptcy judge who now is emergency manager for Detroit Public Schools, at the 2015 Mackinac Policy Conference.

But as the legislature targeted funding and issues of educational quality in Detroit, the U.S. Attorney's Office announced on March 29 the prosecution of educators - 12 Detroit public school principals and one assistant superintendent - in the kickback scheme.

Those charges coming amid a bailout worth more than a half-billion dollars fuel distrust among many Michigan residents regarding the Detroit Public Schools, Rhodes acknowledged. They follow other investigations over previous years that most recently touched the state-initiated Education Achievement Authority reform district and the DPS.

"We recognize that it is a challenge that we have and we are embracing that challenge, and want to build that trust," Rhodes said. "... It extends from finances to academics."

Rhodes already reinstated the Office of Inspector General in the district. The office conducts investigations into fraud, mismanagement, conflict of interest and waste, in part through forensic audits. For six years, "the OIG has conducted hundreds of investigations, and identified millions in monetary benefits to the District, " according to the DPS website.

The position was eliminated in 2015 by former Emergency Manager Darnell Earley to save money, but Rhodes - appointed in late February - brought it back in late April.

"I came to a conclusion really quite readily that we need that person in place for the deterrent effect," Rhodes said.

Beyond that, that person will "continue the important work of investigating any allegations that we get of wrongdoing."

Targets of investigations could reach all corners of the district, Rhodes said.

"Employees, vendors, anyone we come in contact with."

The corruption that diverts funds from the classrooms to the pockets of school district employees and others is just one of the complicated financial issues that face the district and erode trust in it across the state, Rhodes said.

The public also needs to see the district operating on a balanced budget, which still may take some time. That isn't uncommon in a situation when a public body faces insolvency, said Rhodes, the former U.S. Bankruptcy court judge who presided over Detroit's historic case.

"We want to have a balanced budget to encourage trust," he said. "It may take a year or two to get there.

"... It's hard to go from extreme budget deficits to balanced budgets all at once," Rhodes said. "But we're going to set ourselves on a path to do that."

Rhodes said statewide trust also will come from the district building a more stable relationship with its teachers, many of whom have publicly criticized the district and held sickouts early in May over the prospect of unpaid work and legislative action that would no longer recognize teacher bargaining units.

"We're going to work on (the relationship) going into collective bargaining with our union," Rhodes said. "I'm hopeful that will enhance their morale. ... We need to acknowledge in a more positive way their contributions to Detroit public schools."

Rhodes said he recognizes many challenges about communicating the issues facing Detroit schools with suburban and out-state residents.

One-on-one conversations have been productive, he said.

"I have found that when I actually talk with people from (other areas), they are willing to set aside their preconceived notions and ideas about Detroit and DPS," he said. "And they are willing to try to grasp what's happening in the city."

What needs to happen next, Rhodes said, is to increase the number of conversations.

"We need to do a better job of reaching out ... and not just (to) legislators," he said, saying that business leaders and ordinary citizens need to be included in that effort.

Meanwhile, Rhodes said he also looks forward to rolling out a new academic plan for Detroit by the end of June under new interim Superintendent Alycia Meriweather, whom he praised for her innovation and energy. She recently called a 120-member Academic Advisory Council to create a long-term, data-driven plan for the schools.

"People around the state should take notice of it," Rhodes said. "It'll be a substantial and worthwhile plan."

Among other innovations in the district that were announced in May: Science, Technology, Engineering, Arts and Mathematics (STEAM) will expand, and the first public Montessori schools in Detroit will open this fall. They will join accelerated academic programs and smaller high school learning communities.

While Rhodes encourages efforts to improve education in the city and supports many initiatives to bolster its financial footing, he also said he won't tolerate a lack of integrity from within.

"There will be no hiding of (corruption) or sweeping it under the rug while I'm transition manager," Rhodes said.

Paula Gardner covers Michigan business for MLive.com. She can be reached by email or follow her on Twitter.