OAKLAND -- Amid signs that testy undercurrents persist, Gov. Gray Davis on Monday signed legislation loaning a record $100 million to bail out the financially troubled Oakland school district.
An hour later, state schools chief Jack O'Connell appointed a state administrator who will have control over the 48,000-student Oakland Unified School District, and announced that the once-popular district superintendent would soon leave.

The actions rendered powerless the elected school board and ended almost a year of bickering among board members, Superintendent Dennis Chaconas, state legislators, union representatives, parents and others over how to address a budget deficit some estimated at close to $100 million.
"Children should not have to pay the price when a school district goes bankrupt," Davis said in a statement. "This loan will allow Oakland Unified to continue to serve its students while working toward full recovery."

O'Connell, at a press conference at an Oakland elementary school, introduced the new state administrator, Randolph Ward, who until recently had served in the same capacity overseeing the Compton school district in Los Angeles.

"I want to see the academic achievement at (the Oakland) school district continue to improve," O'Connell said. "Number two, we need to restore the fiscal integrity of this school district. And number three, I've asked him to put himself out of business as quickly as possible."

But as the press conference ended, O'Connell was confronted by Gregory Hodge, president of the Oakland school board, who asserted that the state schools chief had ignored his efforts to confer about the district's problems, the hiring of a state administrator or Monday's press conference.

"On behalf of the board, there's not been any formal communication," Hodge told O'Connell, as Ward listened. "So that's been very upsetting and frustrating. I just want to say publicly that I would hope that as we move forward, that will not be the situation."

Sheila Quintana, the president of the Oakland teachers union, suggested Ward cancel tens of millions of dollars in consulting contracts instead of laying off teachers.

Ward acknowledged earlier that he is not yet sure how to lift the district from its financial hole, but said he expects some clashes with the school board, which now becomes an advisory body.

"Will we have conflict? Absolutely," he said. "Certainly, I expect that we will at times agree to disagree. But I will treat (board members) with the utmost respect."

The $100 million loan, authorized by legislation sponsored by Sen. Don Perata, D-Alameda, is to be paid back over 20 years, with interest.

O'Connell said he asked for Chaconas' resignation on Monday, and that it was forthcoming.

Chaconas, who was hired in early 2000, was credited with improving academic test scores, and was popular with parent groups and some board members. But he has conceded spending too little time managing district finances, and he has had frosty relations with Mayor Jerry Brown. Chaconas' dismissal was demanded weeks ago by Perata and the teachers union.

Ward begins his Oakland tenure in two weeks. State control over the Compton district he left after six years ended Monday, O'Connell said. Test scores at that district are up, the $20 million state loan it received in 1993 has been repaid, and its first new school building in 30 years is under construction.