By Andrew Thomason | Illinois Statehouse News
The move comes after years of poor academic performances for the school district and alleged nepotism and mismanagement of contracts by the former school board.
The state put the five-person financial oversight panel in place this spring to help the faltering school district, but allegations came forth about the existing school board acting obtrusive and not working with the panel.
The oversight panel will be in place for at least three years, according to the Illinois State Board of Education.
Koch said going forward with the loan application, which was approved 8-0, wasn’t taken lightly.
“It’s a way to bring in revenue that’s desperately needed,” Koch said. “It definitely adds another burden, another financial burden”
Arthur Culver, East St. Louis School District superintendent, could not be reached for comment Friday.
It’s the first time a school district has applied to the authority for an emergency financial assistance loan. The interest rate and who will be responsible if the school defaults on the loan are still unknown, according to Michelle Damico, a spokeswoman for the finance authority.
“We’re interested in being helpful and following the statute but for now aren’t prepared to comment” on the details of the loan process, Damico said.
A new, state-appointed authority will take over the duties of the school board, for the time being.
The drama surrounding the school district is far from over.
Originally reported by Illinois Statehouse News. Read the original article here.