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Bill to Erase IUSD’s Burdensome Loan Interest Inches Closer to Approval

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After 13 years of state control of Inglewood schools, officials could soon see light at the
end of the tunnel. State Assemblymember Tina McKinnor (D-Inglewood) is pushing a
bill that would eliminate interest on the $29 million loan, so the Inglewood Unified
School District (IUSD) can repay the loan and get out of receivership.
AB 51 modifies the terms of Inglewood USD’s loan to 0% interest. Assemblymember
Mia Bonta (D-Oakland) co-sponsored the bill which will also eliminate interest on
Oakland USD’s $100 million loan. A hearing on AB 51 will take place on the Assembly
Floor next week.
Burdened by low academic outcomes and financial mismanagement, Inglewood’s
troubled schools got a lifeline from the State of California in 2012. Today, despite the
decision to close 5 Inglewood schools due to low enrollment, the district continues to be
saddled with debt.
Currently, the district pays a little under $2 million annually in interest, McKinnor said.
With a 0% interest rate, the Inglewood USD can repay the loan and regain local control
faster—in about 5 years.
“After 13 years of paying this high interest loan, we should be granted 0% interest.
We’re not asking for loan forgiveness. We’ll be paying less, and that money can be
reinvested to help the children,” McKinnor said.
Working as a District Director under former Assemblymembers Rod Wright and Steven
Bradford, McKinnor recalled that her former bosses advocated for the loan. “They
asked for an emergency loan to stabilize the district. It was never their intent to
penalize the children,” McKinnor said.
“It’s like a payday loan,” she continued. “Years later, we’re still paying for it. It’s only in
districts that are poor that go into receivership. We were poor, but now things are
better. It’s time for the state to refinance this loan and give children a real chance. I
commend Dr. (James) Morris (County Administrator, IUSD) for having a plan.”
In addition to AB 51, McKinnor sponsored AB 851, designed to protect wildfire victims
from being taken advantage of by unfair offers. “We have people who prey on people
when they’re vulnerable. We wanted to make sure people impacted don’t end up selling
their property for pennies on a dollar. This gives them time to sell their property after
doing their research. They have 4 months to rescind; normally they would only have 3
days.” AB 851 will be voted on by the Assembly Appropriation Committee by the end of
May.

AB 57 calls for access to downpayment assistance for descendants of enslaved people
in California. “The Governor has a home assistance program, but we (Black Caucus)
didn’t want to rely on that. With this program, we want to have 10 percent set aside for
descendants of slaves,” McKinnor said. Right now, the Caucus is setting the criteria on
what documents are required. “One of the universities is studying genealogy to help
decide how many generations to go back, to be eligible. We’re figuring those things
out.”
Other bills sponsored by McKinnor include temporary shelter for wildfire survivors and
pets (AB 311); and protection of workers rights to unionize in California (AB 288). On
April 7, the California Assembly approved McKinnor’s AB 628, which requires new
residential leases to include a working stove and refrigerator. It has moved on for
Senate approval.
AB 51 is endorsed by the Los Angeles County Office of Education (Sponsor); Inglewood
Mayor James T. Butts Jr.; James Morris, County Administrator, Inglewood Unified
School District; the Inglewood Area Minister’s Association; and Inglewood Teachers
Association.

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