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Butkovitz questions the District's 'viability'

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Given the doomsday budget news delivered by the School Reform Commission last week, City Controller Alan Butkovitz has written a letter to new Chief Recovery Officer Thomas Knudsen to question whether the District can continue "as a going concern."

Butkovitz, a longtime District critic, said that his upcoming Auditor's Report of the District, due February 10, will reflect this doubt unless it comes up with answers soon. He has requested a detailed response by Friday to several issues, including its "ineffectiveness" in solving the current gap, its "inability" to identify new sources of revenue, and a lack of plans to address an expected gap next year.

District spokesperson Fernando Gallard issued a statement. "It is important to note that there has been no finding that the District cannot continue as a “going concern,” he wrote. "The District continues to meet both its debt service obligations and payroll."

Calling the letter "further confirmation" of the District's difficulties, he added: "The SRC has the authority and the determination to correct the current course and intends to do so."

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