LAUSD report comes as board gets ready to OK $320 million in loans
A new audit of Los Angeles Unified's massive $20 billion building program raises concerns about the district using overly optimistic projections in its budgeting and cautions officials about authorizing new construction projects.
The report comes as the school board is set Tuesday to finalize $320 million in loans for new capital improvement projects such as installing solar panels and relocating a police station.
The report by Capital Program Management, Inc. warns the district that while it expects nearly $900 million in bond funds owed by the state, it should only count on receiving about $220 million for now.
That could force the district to dip into its general fund - used to pay for salaries, programs and supplies - to pay back future loans, rather than count on money it already has on hand in its bond reserves.
The report has at least one board member rethinking Tuesday's scheduled vote. Board member Yolie Flores said the report makes her question whether the board should approve all $320 million, but she acknowledged that