Phoenix - The Arizona Auditor General has determined that the school district serving a northern Arizona community long dominated by a polygamist sect is financially solvent.
The auditor general's recent finding is needed for the state Board of Education to release the Colorado City Unified School District from state receivership and place it back under local control. The board next meets Oct. 26.
The board placed the district under receivership in December 2005 after state officials said the district's finances were in shambles.
Officials cited employment featherbedding for Fundamentalist Church of Jesus Latter Day Saints members and a pullout of FLDS students that cut into enrollment-based funding from the state.