SAN FRANCISCO — The board of a nearly bankrupt East Bay school district has voted to become only the fourth district statewide to fall under state oversight, accepting a $2.3-million state bailout.
The Emery Unified School District Board voted 4 to 1 Monday night to approve the loan and the appointment of a state auditor to oversee the finances of the tiny district, whose superintendent resigned under allegations of financial impropriety.
J.L. Handy, who was superintendent of Compton schools in 1992 when that district became the first in California to submit to state takeover, has pleaded innocent to two counts of theft of public funds and one count of violating state conflict-of-interest laws.
"Handy is responsible for 50% of the state takeovers--two out of four," said Doug Stone, a state Department of Education spokesman.