May 12, 2010 8:57 PM by David Ortiviz
In light of the scathing audit on the Cesar Chavez School Network, Pueblo City Schools has big concerns about Cesar Chavez Academy's debt. On Wednesday, the state treasurer traveled to Pueblo to address those concerns.
Cary Kennedy says the academy owes nearly $15.7 million in bonds, which were used to build Dolores Huerta Preparatory High in 2007. The School District 60 board wanted to know what happens, if the academy doesn't pay the loans.
"The liability would not fall back onto the district," said Cary Kennedy, State Treasurer. "Although we're hopeful the district will support the school going forward, whether it has additional oversight in management or a different structure in place, but that it will continue to use the high school," she added.
If the academy doesn't fulfill its financial obligations, Kennedy says the state has reserve funds in place that would cover the debt owed on the high school.