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One by one government school districts are being taken over by the State. A Contra Costa county district is now next in line.
They have run out of money.
"When Mt. Diablo district Superintendent Steven Lawrence sent a memo to parents warning about the possibility of a state takeover last month, I was surprised, because the 2010-11 budget has a positive ending balance, according to district projections. But when I spoke to the chief business official for the Contra Costa County Office of Education a few days ago, he confirmed that Mt. Diablo's budget is worse than it initially looks on paper.
Unlike most districts, Mt. Diablo borrowed money in the middle of the school year to cover its cash requirement, through a loan called a "TRANS," he said.
"Basically, you're going to your creditor, saying, 'I need cash to close my books for the end of the year or I'm not going to have enough money to make my payroll,'" he said. "It's short-term borrowing."
How do you run out of money if "on paper" the finances look OK?
Sadly, "professional" educators have financial problems all over the State, along with a high drop out rate. Government schools, like cities and counties, are in deep trouble. Wonder how many other districts are in the same fiscal condition?
More...
They have run out of money.
"When Mt. Diablo district Superintendent Steven Lawrence sent a memo to parents warning about the possibility of a state takeover last month, I was surprised, because the 2010-11 budget has a positive ending balance, according to district projections. But when I spoke to the chief business official for the Contra Costa County Office of Education a few days ago, he confirmed that Mt. Diablo's budget is worse than it initially looks on paper.
Unlike most districts, Mt. Diablo borrowed money in the middle of the school year to cover its cash requirement, through a loan called a "TRANS," he said.
"Basically, you're going to your creditor, saying, 'I need cash to close my books for the end of the year or I'm not going to have enough money to make my payroll,'" he said. "It's short-term borrowing."
How do you run out of money if "on paper" the finances look OK?
Sadly, "professional" educators have financial problems all over the State, along with a high drop out rate. Government schools, like cities and counties, are in deep trouble. Wonder how many other districts are in the same fiscal condition?
More...