Vallejo school district feeling effects of city's bankruptcy vote

S.F. Chronicle reports:

Vallejo's decision to declare bankruptcy last week has caused the Vallejo City Unified School District - a separate governmental entity - to suffer the loss of financing for portable classrooms, the delayed delivery of textbooks, the decline in value of general obligation bonds and a reduction in the number of on-campus city police officers, school officials said Wednesday.

At a press conference Thursday morning, the school district hopes to reassure investors, contractors, bondholders, financial institutions and the community that the school district is solvent, not bankrupt, and, by state law, a separate government agency than the city of Vallejo.

School officials said Wednesday that the mistaken impression that the school district is part of the city government caused publisher McGraw-Hill to delay delivery of $684,000 in textbooks, an investment group to pull $400,000 in financing for the purchase of already ordered portable classrooms for three school sites, a reduction in the value of $133 million in general obligation bonds issued by the school district to decline sharply the day after the bankruptcy vote, and a reduction in the number of city police officers assigned to high school campuses.