States Intervene When School Districts Hit Financial Trouble

By Adrienne Lu, Stateline Staff Writer –  Pushed to the brink of financial ruin, Normandy, a school district in Missouri will officially breathe its last breath on June 30. The district’s finances buckled this year under the weight of a state law that requires school districts that fail to meet certain academic standards to pay tuition and transportation costs for students who want to transfer to other districts. Normandy, which lost its state accreditation in 2013, saw about 1,000 students, or 25 percent, of the district’s students move to other schools this year at a price tag of about $8 million. Normandy is not alone among school districts struggling with serious financial problems. Each year, a handful of school systems across the country fall into such deep financial or academic trouble that states step in to help – or even take over entirely. The number remained steady in the first few...

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