Commentary – A Cautionary Tale for Cash-Strapped CA School Districts: Vallejo City Unified Pays Off $60M Loan

Joe W. Bowers Jr. | California Black Media& OPINION (CBM) – Vallejo City Unified School District (VCUSD) has repaid its $60 million state loan, ending 20 years of state oversight that began in 2004. The loan, caused by severe financial mismanagement, placed the district in state receivership, stripping the local board of control. On Sept. 5, State Superintendent of Public Instruction (SPI) Tony Thurmond joined district officials to celebrate the milestone and reflect on the lessons for other struggling districts.& The $60 million VCUSD borrowed in 2004 grew to $68.5 million with interest. Reflecting on the district’s journey, Superintendent Rubén Aurelio called the repayment “a milestone of resilience and collaborative efforts.”VCUSD Board of Education President Latyna Young, celebrating the district’s accomplishment, stated, “I was here when we took out the loan, and I’m here when we paid it back in full. It’s a blessing. We made it through the storm, and now we can see the rainbow.”& In a prior statement, SPI Thurmond praised the district’s progress, saying, “This significant milestone reflects the hard work and dedication of the district’s leadership and community, paving the way for a brighter future for all students.”& The receivership process for districts like Vallejo...