Developing: County Office of Education Says Pasadena Unified at Risk of Insolvency, Requires Fiscal Stabilization Plan by February 26

Published : Friday, February 2, 2018 | 6:47 AM

Saying it is very concerned by the Pasadena Unified School District’s level of deficit spending and the District’s fiscal solvency, the Los Angeles County Office of Education put District on notice it has until February 26 to submit and get Board approval of a Fiscal Stabilization Plan.

In a six-page letter to School Board President Roy Boulghourjian dated January 19, Dr. Candi Clark, the County Office of Education Chief Financial Officer, said that Pasadena Unified has placed itself “in immediate risk of becoming insolvent.”

Clark said the District’s spending has so exceeded plans that the District no longer meets the state-required minimum reserve funds level for the current school year.

As a result of that “negative certification,” Clark wrote, “the district must take immediate steps to restore the current year REU [Reserve for Economic Uncertainties] to the state required minimum level.”

Clark said the Los Angeles County Office of Education will be placing a fiscal expert at the District, at the expense of the County office, to assist in the development and implementation of the Fiscal Stabilization Plan.

The County Office of Education, Clark wrote, is prepared to elevate the fiscal expert to an advisor with stay and rescind authority if the District does not make satisfactory progress.

 

Editor’s Note: This is a developing story. We will publish further details later today.

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