Bill > SB533

This bill provides an emergency loan of up to $29 million to the Inglewood Unified School District (IUSD) to address its severe fiscal crisis, which includes deficit spending, insufficient reserves, and projected cash insolvency by March 2013. The Los Angeles County Office of Education declared IUSD's budget as "negative certification," meaning it cannot meet its financial obligations. To manage this situation, the Superintendent of Public Instruction will assume control of IUSD's governing board and appoint a state administrator to oversee its operations and implement recovery plans. The County Office Fiscal Crisis and Management Assistance Team (FCMAT) will assist in developing these plans and monitoring the district's progress. The loan must be repaid over 20 years with interest, and IUSD can also seek additional bank financing up to $55 million. The district is permitted to sell property to help repay the loan and is ineligible for other financial hardship assistance during this period. The bill also mandates training for school board members and personnel on financial management and fiduciary responsibilities. This legislation is declared an urgency statute, meaning it takes effect immediately to address the critical need for funds to continue educational services.