SACRAMENTO — The largest school bailout in state history was approved by the Assembly Friday, moving an Oakland school district closer to financial solvency and oversight by a state administrator.
The Assembly voted 54-9 to approve a $100-million emergency loan to the Oakland Unified School District.
Sen. Don Perata (D-Oakland) said the district had run up debts because of an antiquated accounting system, declining enrollment and rising expenses, including higher salaries.
Without the loan, the district expects to run out of money by the end of the fiscal year, Perata said, and won't be able to pay employees.
"This is unfortunate situation," said Assemblywoman Wilma Chan (D-Alameda). "I don't want to excuse what happened in Oakland, but we have an obligation to maintain education for these children."
