Senators Authorize Loan To Bail Out College

June 27, 2006 - Posted in College Loans, Education News, Student Loan

The state Senate approved a $30 million emergency loan Monday to keep the financially strapped Compton Community College District afloat.

Sen. Jack Scott, D-Pasadena, said the district would not be able to pay its employees after the end of this month without the state’s help.

“I’m not merely crying wolf,” he said.

The district has had financial problems for several years. Under legislation passed in 2004, the chancellor of the California community colleges system appointed a special trustee to manage the district.

Officials say the district’s finances have improved since then, but it still faces red ink.

The loan bill approved by the Senate, a measure by Assemblyman Mervyn Dymally, D-Compton, also provides for another community college district — El Camino — to provide classes for Compton students if the Compton district loses its accreditation because of its financial problems.

A 27-8 vote returned the Dymally legislation to the Assembly for a vote on Senate amendments.

© 2006 The Associated Press. All Rights Reserved.


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