'Turnaround Firm' May Close Schools, Lay Off Staff

St. Louis – The private management firm now running the St. Louis public schools says the district's money problems appear worse than first thought.

Because the district has no reserves, the managers say the school system may have to close some schools, eliminate departments and lay off staff, including teachers.

Executives of Alvarez and Marsal say overspending and state budget cuts mean the district could face a $90 million operating deficit for the coming school year.