School District to File for Bankruptcy
Two weeks away from insolvency, a Northern California school district’s board voted Wednesday to file for bankruptcy protection as a way out of its financial quagmire.
“I think we need to do something to get the state of California’s attention,” said Richmond Unified School District board member Frank Calton.
Faced with the prospect of having just enough money to meet a $7-million payroll on May 1 and no more, board members directed their attorneys to file a bankruptcy petition under Chapter 9 of the U.S. Bankruptcy Court in San Francisco by the end of the week.
Board officials said their action would not close down schools.
The district’s plight, which brought the Rev. Jesse Jackson to town earlier this year for a support rally, stems from a $29-million deficit.
“There have been three years of deficit spending and some mismanagement,” acknowledged school district spokesman Paul Ehara.
Former Superintendent Walter Marks was ousted in December, 1990, leaving with a $93,990 buyout check.
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