District Owes $2 Million to County, Board Learns : Education: Unexpected debt for services dating back to 1990 is the latest in a string of financial setbacks.

School officials disclosed this week that they owe the county education office about $2 million in back payments for special-education services provided to the school district.

News of the debt, which stunned some board members, is the latest in a series of financial setbacks for the Compton Unified School District.

“It was a total shock to me,” school board President Kelvin Filer said. “I didn’t know the liability was out there. It’s disturbing and distressing news.”

The money is due to the Los Angeles County Office of Education for services dating back to the 1990-91 school year. For that year, the district owes about $500,000. For the 1991-92 school year, the district owes about $1.2 million. The district also may owe money for the current school year, Acting Supt. Harold Cebrun said.

The debt cannot be paid immediately without throwing the school district of 28,000 students into insolvency. District reserves for the year have slipped below $500,000, officials said.

Cebrun said he and his staff are negotiating a payment plan with the county. Officials will also review the county’s bill to ensure the district is not being overcharged, Cebrun said.

Filer said district administrators were reviewing the budget to see if further cuts or adjustments need to be made as a result of the special-education debt.

Officials said Wednesday that they were uncertain how the debt was discovered or how it had been allowed to accumulate over nearly three school years. Board members have directed Cebrun to prepare a full report.

Special-education programs typically serve students who have serious physical, mental or learning disabilities. Many special-education programs for county school districts, including Compton Unified, are either provided or coordinated by the county education office.

Over the past year, the Compton district has had numerous financial problems. Preparation of this year’s budget fell months behind schedule. Ultimately, an anticipated surplus of $4 million evaporated into red ink, prompting officials to cut $4.9 million in jobs and programs. Some of those savings failed to materialize, however, because of delays in implementing the cuts. Some job cuts had to be rescinded because of technical errors in the layoff process. The result is that district reserves are nearly depleted.

In addition, auditors confirmed in November that the district owed about $1 million in tax penalties. An earlier audit concluded that the district had squandered millions of dollars on construction projects and food services in recent years.

Board members said efforts to uncover mistakes and debts are a sign that the school system is making a serious attempt to right its finances. District officials have met regularly with county administrators.

“I’m happy to say that with the county’s help, we now have the checks and balances in place,” Filer said. “Because we made the corrections, we’re catching these things.”