Governor to School: Return $1 Million

Governor to School: Return $1 Million

Gov. Rod Blagojevich's administration said Wednesday that it has taken the first formal steps toward recovering a $1 million grant given to a politically connected private school that has yet to open its doors.

The Department of Commerce and Economic Opportunity wrote to officials at the Loop Lab School and told them they were in violation of their grant agreement.

The agency's lawyer, William O'Donaghue, wrote in a letter that the school failed to produce necessary records relating to prospective students and teachers, and failed to show it has the "financial resources needed to operate."

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