Jan 24, 2008 11:44 am US/Eastern
Police Investigating Salem's $4.7 Million Deficit
SALEM (WBZ) ―
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Salem Mayor Kim Driscoll has blamed former business manager Bruce Guy for intentionally mismanaging the finances and covering it up.
CBS
Salem police have opened an investigation into a $4.7 million budget deficit in the schools that forced dozens of midyear teacher layoffs.
School officials have been forced to eliminate 65 teacher and staff positions. The number would have been higher, but private donors have contributed enough money to save 10 positions, so far.
Mayor Kim Driscoll has blamed former school department business manager Bruce Guy for intentionally mismanaging the finances and covering it up.
Police plan to speak with Guy and others to see if any laws were broken.
Guy has not commented publicly.
District officials said they don't believe Guy stole money but that it was a case of an accountant only giving the district good news and hiding or deceiving the council and board about the bad news.
Salem faced similar problems because of a budget deficit just two years ago.
In 2006, nearly 40 teachers, counselors, aides and custodians were laid off and the hours of several other staff members were cut in order save $1 million. They were facing a $3.5 million budget deficit at the time.
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