What happens if City schools go insolvent
By Keegan Kyle/Voice of San Diego
Last week, top officials said the San Diego Unified School District is on the brink of financial collapse and may require a state takeover to remain afloat. So what does that mean? A takeover would push the state to loan the district millions of dollars to pay for its bills. Declaring insolvency would spur radical changes in the district's operations. In exchange for the loan, the law requires local officials to hand over control of the district to the state. Ironically, it would either fire or relegate the top two officials that are sounding the district alarm, Superintendent Bill Kowba and board President Richard Barrera. Here's how the beginning steps would unfold: (more...)