L.A. schools to borrow millions to fix payroll
L.A. school officials will seek to borrow millions of dollars to make a balky payroll system work, officials reluctantly acknowledged at a Tuesday school board meeting. If all goes well, the loans will be repaid through savings generated by the improved system.
Part of a $95-million technology upgrade, the payroll system overpaid or underpaid thousands, causing ongoing tax and pension problems. Consulting firms had billed for an additional $13.5 million by year’s end.
“We still have a long road to go, and we can’t just sit and wait for failure to occur,” said consultant Mark Robinson, who, with Los Angeles Unified School District staff, laid out plans Tuesday to enhance the system.
They declined to answer specific questions about costs -- saying they would return in April -- but officials acknowledged in interviews that front-end borrowing would run into the millions.
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