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Nearly $10 Million Owed to LAUSD by Teachers Who Were Mistakenly Overpaid

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Photo by The Consumerist via Flickr

Remember in 2007 when a major LAUSD computer glitch caused thousands of teachers to go without a paycheck while other teachers, including former ones six feet under, got paid extra? That's all fixed now, but the school district is still seeking $9.4 million from 2,400 current and former employees.

“Thousands of honest employees voluntarily paid back the money. We are aggressively pursuing the hold-outs who are, in effect, stealing dollars that should be spent on instruction or to save jobs,” said LAUSD General Counsel Dave Holmquist in a statement.

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Some 35,000 employees were overpaid $60 million the Business Tools for Schools (BTS) payroll system royally screwed the district and employees. Some teachers earned a few hundred extra dollars with others earning close to $100,000.

“Most employees either have repaid the District or have made arrangements to have the amount withheld from their paychecks,” said Megan Reilly, Chief Financial Officer. “The money must be paid back. It is also urgently needed at this time to stop some layoffs.”

An LA County Superior Court judge is "poised" to grant the district judgements against two employees--one who received $96,000 and another who got $52,000, according to a news release. A third teacher has settled for the full amount of $40,000. Teachers who owe smaller amounts--the average is $5,000--will be referred to a collection agency and if payment is still refused, ore lawsuits will be filed in 2010, he district promises.