Rochester City School District under federal investigation from SEC
The city of Rochester received a subpoena from the Securities and Exchange Commission last week as part of an investigation into the Rochester City School District.
The inquiry was spurred by a budget presented by the district’s former Chief Financial Officer Everton Sewell last spring. That budget was used by the city to borrow about $50 million in government bonds to cover the district’s payroll and expenses, which is typical. What was not typical is that budget was an estimated $30 million in the red and Sewell didn’t tell anyone about it. Sewell resigned before a board meeting in October. Earlier this month, Superintendent Terry Dade told WXXI News that the shortfall is now an estimated $64.8 million.
A statement from the city corporation counsel Tim Curtin called this “a serious matter” that will affect city residents and taxpayers. He also notes that the district is “ultimately responsible for its own management and finances.” Read more from WXXI-AM News.