Denver will use $3 million of its contingency fund money to help pay out settlements this year under an ordinance the City Council approved Monday.

The council makes a similar transfer every year, but the amount varies depending on the settlements reached, said Laura Swartz, the spokesperson for the city’s finance department.

“It is difficult to budget for settlements in advance because the amounts and timing can be unpredictable based on each case’s own scheduling, negotiations and court decisions,” Swartz said.

Every year, the city sets aside $2 million for settlements in the budget. Officials request a transfer from the contingency fund for anything needed above that amount. The 2026 transfer brings the amount that will be used to pay out settlements this year to $5 million so far.

This year’s allotment will leave the city with $30.5 million remaining in its contingency fund. The contingency fund is separate in the annual budget from the city’s reserves, which officials have been working to replenish from a recent low point.

The city has been ordered to pay millions of dollars in settlements in recent years related to the Denver Police Department’s actions during the George Floyd protests.

Earlier this month, the council approved about $2.87 million in payments for 13 people who alleged that local police violated their constitutional rights during the 2020 protests.

In April, a federal appeals court ruled that the city must also pay $14 million to another group of protesters, upholding a jury verdict. The city hasn’t yet said how it will pay out that amount.

By CHRISTOPHER WEBER and BIANCA VÁZQUEZ TONESS

LOS ANGELES (AP) — The superintendent of Los Angeles public schools has resigned four months after he was put on paid leave during a federal investigation, saying he wants students to learn “without distraction.”

Alberto Carvalho ‘s resignation letter dated Sunday made no direct mention of the FBI’s Feb. 25 search of his home and the LA Unified School District’s headquarters. Two days after the FBI served the search warrants, the district’s Board of Education voted unanimously to place Carvalho on leave pending the outcome of the investigation.

Authorities have not provided details of the nature of the investigation involving the district, which serves more than 500,000 students. The investigation appears to relate to a contract the school district had with an education technology company whose leader was later indicted for fraud. The company, AllHere, had a contract with the district to create an AI chatbot.

Before becoming the Los Angeles superintendent in 2022, Carvalho had spent his entire education career in Miami-Dade County Public Schools, where he drew national praise for improving graduation rates and academic achievement among Black and Hispanic students. While advocating for Miami’s immigrant students, he spoke openly about his own struggles as a young recent arrival from Portugal working in restaurants and construction while homeless at times.

Under Carvalho, the Los Angeles district had been making strides. Students’ academic growth has outpaced the state average in recent years and students have bounced back from pandemic learning loss. Voters overwhelmingly passed a $9 billion construction and modernization bond, the school system’s largest ever.

Carvalho has denied wrongdoing

Authorities have not accused Carvalho of any crimes. He denied any wrongdoing earlier this year and had asked to be reinstated as head of the nation’s second-largest district. On Sunday he resigned via a letter addressed to “students, families, teachers, staff, and community.”

“Placing students first has always guided my work,” Carvalho wrote. “Because I believe our schools must remain focused on students and learning without distraction, I am resigning as Superintendent of LAUSD effective today, June 21, 2026.”

In its statement released early Monday, the Board acknowledged it received the letter of resignation.

“The Board remains steadfast in its commitment to ensuring stability, continuity, and continued progress through strong leadership. Our focus remains unchanged: providing every student with a high-quality education, supporting our dedicated workforce, and maintaining the trust of the communities we serve,” it said. in the statement.

It said that Andrés Chait, who has been acting superintendent, will remain in that position until a permanent decision is made.

The FBI investigation has been linked to the maker of a school chatbot

In February, the FBI also searched a third location near Miami. The Miami Herald reported the Florida property belonged to Debra Kerr, who previously worked with AllHere.

In 2024, Carvalho heavily touted a deal with AllHere for an AI chatbot named “Ed” designed to help students. But about three months after unveiling the technology and paying the company $3 million, the district dropped its dealings with AllHere, which collapsed into bankruptcy. Months later, founder Joanna Smith-Griffin was charged with securities and wire fraud, along with identity theft.

At the time, Carvalho denied personal involvement in the selection of AllHere, according to the Los Angeles Times.

“Mr. Carvalho respects the rule of law and the investigative process and has always acted in the best interests of students and within the bounds of the law,” Holland & Knight, the law firm representing him, previously said in a statement. “While the government’s investigation remains ongoing, no evidence has been presented by prosecutors supporting any allegation that Mr. Carvalho violated federal law.”

Following the search of school headquarters, LA Unified said it was cooperating with investigators and had no further information.

Carvalho became superintendent of LA schools in 2022 on a four-year contract with an annual salary of $440,000. He began a new four-year contract in February, just weeks before the raid, for the same salary, according to school board meeting documents.