CALIFORNIA: School Takeover

The West Fresno Elementary School District, long plagued by financial troubles, likely will be taken over by the state when lawmakers reconvene in January.

The small two-school district needs a $2.5 million loan. It has an $8.5 million budget.

The district needs $500,000 to settle contracts with previous superintendents and financial directors and faces lawsuits brought by 20 ex-employees. At one point this school year teachers and vendors went unpaid.

California's school superintendent last year gave the Fresno County school superintendent the power to veto hiring and spending decisions in the district, but the school board declined to work with a fiscal expert appointed by a Superior Court judge.

The Federal Bureau of Investigations is conducting a probe of the board's spending amid questions about the district's use of a $6.8 million federal technology grant.

Two board members were replaced during the Nov. 5 elections and a recall effort is underway for the three remaining members.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER