Record $3.2-Billion School Budget Voted but Fiscal Outlook Is ‘Tight’

The Los Angeles school board on Monday approved its largest budget ever--$3.2 billion--for the coming school year. But district officials said that because of a substantial cut in state aid, the economic outlook is basically gloomy.

They held little hope that there would be funds to pay for new programs or substantial salary increases for the district’s 60,000 employees.

This budget also marks the first time the district has appropriated any of its share of the California Lottery proceeds, which to date total about $60 million. The board decided to distribute about $12 million--$20 per student--to schools.

According to Deputy Controller Henry Jones, the budget is “tighter now than it has ever been,” largely because of Gov. George Deukmejian’s veto in June of $80 million in special funds for large urban school districts. Included in that cut was about $38 million for Los Angeles.

Money to Be Restored

The governor has said he would restore those funds--in addition to another $100 million in school-related money--if the Legislature will agree to take an equal amount from the Public Employees Retirement System reserve to add to the state’s reserve fund. Supt. Harry Handler and other top education leaders will meet with the governor today to try to persuade him to restore the money before the Legislature adjourns Friday.

As a result of the urban school aid cut, about $29 million remains in the district budget to cover such ongoing expenses as salary raises and new programs, barely enough for a 2% raise for district employees. Raises have averaged 7% over the past three years.

The budget includes an additional $29 million for one-time expenses, such as equipment purchases.

In an interview, Wayne Johnson, president of the local teachers’ union, sharply criticized the district, charging that more money for raises would be available if the district used some of its lottery revenues. The union is asking for a 15% raise for the district’s 30,000 teachers, an increase that Johnson said was reasonable if Los Angeles is to attract and retain qualified instructors.

However, the board took a position last spring that it wanted to spend the lottery money “primarily” on the relief of overcrowded conditions on many campuses and, specifically, on construction of new classrooms. The money has been sitting idle in a special interest-bearing account pending the outcome of legislation that would permit districts to use lottery funds to build schools. The fate of that legislation will be decided this week.

Board member Larry Gonzalez cast the sole “no” vote on the budget to protest the lack of spending on school construction. The Eastside representative said he will try to persuade his colleagues to spend some of the $29 million available for one-time expenditures on meeting the housing needs of the district, which anticipates enrolling 16,000 additional students a year for the next five years.

In a separate action, the board gave final approval for three high schools to become sites for school-based health clinics, and instructed district staff to seek private funding for them. The campuses chosen were Jordan, San Fernando and Los Angeles high schools. The clinics, scheduled to open next year, will provide primary health care, including the dispensing of birth control information and contraceptives.