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Vallejo School Officials Say District Not in Financial Trouble

POSTED: 10:54 pm PDT May 15, 2008

The Vallejo Unified School District sought Thursday to ease concerns and make it clear that the city's bankruptcy filing does not effect the district's finances.

School district officials say vendors and contractors have been calling every day, worried that the city's recent decision to file for bankruptcy means the school district is out of money as well.

But officials stressed on Thursday, that the district operates independently of the city and isn't strapped for cash.

"We are trying to get the word out that we are fiscally solvent," Jason Hodge, the spokesman for the school district, told KTVU. "We have budget issues just like every other school district in the state. But at the end of the day, we are able to pay our bills and meet our obligations."

Hodge said the calls from businesses started the morning after Vallejo voted to file for bankruptcy and the calls are getting more frequent.

"This has come completely out of the blue and continues to grow day by day, so we are trying to stem the tide now and let people know we are fiscally sound," he told KTVU.

Even though the school district is fiscally sound, officials say the city's financial status is having a real-world impact on the district.

Officials say recently, a publisher fearful of not getting paid, delayed the delivery of almost 700,000 dollars worth of textbooks, and an investment group pulled $400,000 in financing to purchase portable classrooms.

The school district says it's now responsible for coming up with the additional money to purchase those classrooms.

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