LANSING, MI -- A $617 million plan to stave off bankruptcy for Detroit Public Schools and put the district on sound financial footing won approval from Gov. Rick Snyder on Tuesday.

"This marks a new day for Detroit families, with DPS free from debt and strong accountability measures for all schools in the city that promises a brighter future for all of Detroit's children," Snyder said in a press release.

The package changes the structure of DPS by splitting it in two, creating a new school district to focus on educating children and leaving an old district to continue collecting millages and paying down existing debt. A local school board will assume responsibility for the district in January and the emergency manager position currently running the district will be eliminated.

The package includes $467 million to help pay off longstanding debt and another $150 million to improve facilities and invest in kids.

The final package emerged as a compromise after competing plans passed the House and Senate. The Senate plan garnered bipartisan support and would have established a Detroit Education Commission to oversee school openings and closures. The House plan skinnied down the amount of money going into the plan, allowed for uncertified teachers and touched on collective bargaining topics like contracts and teacher sick-outs.

A third plan emerged from the House earlier this month. It included many of the policy changes the House had originally proposed but also more money, upping the total amount from $533 million to $617 million. The Senate passed that plan with minor tweaks, but it failed to get a single vote from a Detroit senator or representative.

Here's the DPS bills Snyder signed Tuesday:

HB 5383

HB 5384

HB 5387

SB 711

SB 820

SB 822

Emily Lawler is a Capitol reporter on MLive's statewide Impact Team. You can reach her at elawler@mlive.com, subscribe to her on Facebook or follow her on Twitter: @emilyjanelawler.