School superintendent John Deasy has paid back an $85,785 loan he borrowed from the district to purchase a home in Santa Monica.
When the school district was hiring a new superintendent, the school board added a requirement that the new chief administrator live in either Santa Monica or Malibu — the two communities that make up the school district.
The salary advancement was supposed to be paid back in the form of lower salary increases and bonuses over a few years. But Deasy decided to liquidate some of his assets and finance his home in order to pay back the loan in full.
The school board had been paying Deasy a monthly $1,500 housing stipend since he was hired last July. However, about three months ago the board attempted to loan Deasy $100,000, but the plan was shot down by the Los Angeles County Board of Education. County officials said using the public’s credit rating for personal matters violated the state’s constitution.
Originally published in the Santa Monica Daily Press print edition on May 16, 2002. Read the original PDF.