Deukmejian Vetoes Loan for L.A. College District

Citing “failure to exercise prudent fiscal management,” Gov. George Deukmejian today vetoed a $5-million loan to the hard-pressed Los Angeles Community College District from a community college bail-out bill.

The governor then signed the measure by Assemblyman William Leonard (R-Redlands) that will immediately lend a total of $4.8 million to three other districts in San Bernardino County, Oakland and Susanville.

However, Deukmejian held out an olive branch to the Los Angeles district, saying that if the trustees would agree to financial reforms he would support the loan.

District officials insist they are in financial straits for a variety of reasons, including approval of a 6% pay raise for teachers last year, higher than expected costs of recent trustee elections and worker compensation judgments against the district.

Told of the governor’s action, Los Angeles District trustee Monroe Richman predicted severe consequences if Los Angeles does not obtain the bail-out. The district has until Oct. 1 to repay $5 million advanced to it by the county.

“We’d have to take some drastic cuts and I don’t know where they’d come from,” Richman said. “We’re in a bare-bones budget right now.”

Deukmejian said he has asked Sen. Robert G. Beverly (R-Manhattan Beach) to include the loan provision in a Beverly bill that would allow for Los Angeles community college students to freely attend schools in other districts.

Deukmejian said the Beverly bill “includes the necessary reform” in financial practices.

However, Los Angeles district lobbyists have opposed the Beverly bill. They say such “free-flow” of students is depleting enrollments and state support tied to attendance.