Staff saw bumper pay packets and brought in too many new workers for the revenue it was generating, authorities said.
Meanwhile the district has seen student enrollment dwindle from 16,000 in 2016 to under 12,000 last year across 24 schools in the region.
In a stark warning, Michael Fine, CEO of the Fiscal Crisis and Management Assistance Team, told the school in a January board meeting: “You have some serious cash issues.”
He added: “Far more serious than any other district in the state. I don’t understand why you are always out of cash.”