Takeover of Financially Strapped District in Miss. Sought

By Meg Sommerfeld

Mississippi legislators are working feverishly to pass a measure allowing the state to take over a financially troubled school district before it runs out of money.

The effort faced a temporary setback earlier this month when Gov. Kirk Fordice vetoed a bill that would have enabled the state to appoint a conservator immediately and bail the North Panola district out with a no-interest loan.

Gov. Fordice argued that the loan funds should not come out of the state's "rainy day" fund, saying that money should be reserved for statewide emergencies, not used for local crises. But he pledged to sign new legislation if the money for the bailout came out...