Lawmakers OK Loan Bill for 2-Year Colleges

The Legislature on Thursday approved a measure to loan $5 million to the Los Angeles Community College District and a total of $4.8 million to three other community college districts.

Approval occurred after a key amendment that had stymied the bill was removed. The Senate approved the legislation on a 28-4 vote and the Assembly followed suit several hours later, 57 to 4.

The bill by Assemblyman William Leonard (R-Redlands) still faces an uncertain future at the hands of Gov. George Deukmejian, whose Department of Finance is opposed to it.

However, Leonard expressed confidence the governor would approve the loan for at least three of the districts. He said Deukmejian might veto the money for Los Angeles.

Richard Ray, a Finance Department official, noted that Los Angeles district trustees last year approved a 6% pay raise for teachers and then sought an emergency loan.

‘Case of Responsibility’

“It’s a case of responsibility. The district knew it didn’t have the money and they went ahead” and approved the raise, he said.

However, Norman Schneider, a district spokesman, said the loan was needed for a number of reasons, including the pay raise, the higher than expected cost of recent elections of board trustees, and worker compensation judgments against the district.

In addition to the three-year loan to the Los Angeles district, the bill sets aside another $4.8 million for community colleges in San Bernardino County, Oakland and Susanville, which have also been criticized by Finance Department officials for irresponsible management.

These districts say they face bankruptcy if the loans are not made by next week.

If Deukmejian signs the bill, money for the districts would become available immediately.

The key condition that had blocked the bill was an amendment added by Sen. Alan Robbins (D-Van Nuys) aimed at the Los Angeles district.

Upset with the way the district has treated his San Fernando Valley constituents, Robbins said he sought to force the district to hold an election to fill the board vacancy created by the election of Trustee Rick Tuttle as Los Angeles city controller earlier this month.

District officials have said they want to appoint a replacement to avoid a special election that would cost up to $3 million.

‘Caretaker’ Trustee

Robbins had suggested that the board could appoint a temporary “caretaker” trustee and the district could hold the election in conjunction with the June, 1986, primary election.

But an Assembly-Senate conference committee on Thursday removed the election condition, an action that paved the way for legislative approval.

Faced with defeat on the issue, Robbins joined the majority of his Senate colleagues in approving the bill.

Sen. Ed Davis (R-Valencia) voted against the final version of the bill. He said he was upset about a letter a district lobbyist had sent to lawmakers, saying that if the election condition was not taken out of the bill, the money for the other districts should be rejected.

“It think the tactics of the Los Angeles Community College District are absolutely reprehensible,” Davis said in reference to the letter.