Mitchell Landsberg | LA Times
November 27, 2008 -- A costly, 20-month saga of futility and frustration came to a formal close Wednesday when the Los Angeles Unified School District announced that it had settled a dispute with the contractor that installed its payroll system, which overpaid and underpaid tens of thousands of teachers and other employees by tens of millions of dollars.
The district said the company it had hired, Deloitte Consulting, agreed to pay $8.25 million and forgive $7 million to $10 million in unpaid invoices, for a total settlement that was roughly half the amount the district said it spent to fix the rogue system. In addition to those costs, the district sustained many millions of dollars in other losses related to the payroll problems.
The meltdown inconvenienced and infuriated L.A. Unified employees, bogged down new Supt. David L. Brewer and -- fairly or not -- contributed to the district's reputation for managerial blundering.