"With costs mounting for alleged sexual misconduct cases, the Los Angeles school board has approved $250 million in bonds - on top of $500 million already authorized less than a year ago - to fund payouts to victims. The cost of both bond issues, including financing, is expected to be more than $1 billion, based on cost estimates provided by the district, and will be paid out of the district's general fund over at least a decade."
"The additional money is needed, said L.A. schools Supt. Alberto Carvalho, because "we are exhausting funds available to us to satisfy sex and molestation cases that have been brought against the district, in many instances, reflecting cases that go back decades, that the district is not willing - not able - to successfully defend. "So, these multi, multimillion-dollar judgments against the district need to be satisfied, and without the judgment-obligation bonds, we would have to use general fund as cash to satisfy them," he said."
The Los Angeles school board approved an additional $250 million in judgment-obligation bonds, supplementing $500 million authorized less than a year earlier. The district estimates combined bond costs, including financing, will exceed $1 billion and will be repaid from the general fund over at least a decade to reduce immediate budget strain. Judgment-obligation bonds act as loans from investors that can be drawn down to pay sexual misconduct claims as they arise. Superintendent Alberto Carvalho said available funds are being exhausted by sex and molestation cases, many dating back decades, and the district cannot successfully defend some claims. Officials said the district is lobbying for legislative relief and warned that more claims could be forthcoming.
Read at Los Angeles Times
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