Due to the financial instability of Sweetwater Union High School District, the San Diego County Office of Education has contemplated offering a $12 million loan to carry the district through its financial troubles.
The strain of the financial struggles has now trickled down to the students. Since the district overspent by $30 million, San Ysidro High School will now be forced to shut down free bus routes and seniors will not have laptops this academic year. As a demonstration of their frustration, the students scheduled a protest walkout.
The primary reason for the $12 million loan was to catch up on excessive prior borrowing. Usually, when the district is short on funds, it can take some money from the building fund, which is designated for school construction. When money is taken from the fund, the school is supposed to pay back the amount by the end of the school year. However, on July 1 the Sweetwater Union High School District came out of compliance with state regulations when they failed to pay back the $12 million borrowed from their own building fund.
There was extensive debate on whether the loan would even be accepted should it be offered. Ultimately, the San Diego County Office of Education elected to offer the loan to Sweetwater. To the surprise of many, the school district indicated it will decline the loan. Interest likely played a significant role, considering there would be additional interest if they borrowed from the county.
However, in not to take the loan, the district is still liable for violating state regulations. It is unclear what the next step will be for Sweetwater Union High School District, but the massive debt and broader budgetary concerns remain an issue.
Photo by Angelina Litvin
