Reserves Will Keep Schools in the Black

The La Habra City School District will operate in the black this year, despite reduced revenues from the state lottery and increased costs for energy, health insurance and employee pay and benefits.

The school board voted this week to approve an $18-million budget for the fiscal year ending in June, 1991. The spending plan requires, however, that the district use more than $500,000 from its reserve fund.

“Never before have we been hit with such an avalanche of lower income and greater expense,” Supt. Richard Hermann said. “There are a couple of twists to this year’s budget situation that I’ve never experienced before.”

Hermann was particularly disturbed by a fee estimated at more than $100,000 that may be assessed by the county for collecting district property taxes.

He said the fee amounts to “double taxation.”

The budget anticipates continued growth in enrollment. Hermann told the board he expects daily attendance to climb by 51 students. The new total will be 4,525 students attending the district’s seven elementary schools.

The budget provides $400,000 for employee pay increases but does not allow for a cost-of-living adjustment. Negotiations regarding more raises are under way with the teachers union and other district employees. State lottery revenues for last year were nearly $700,000. Hermann said that amount will drop during the current fiscal year, but he is not sure by how much.

Nearly seven-eighths of the budget goes for employee pay and benefits. Hermann said any savings must come from other areas, including supplies, operating expenses and capital outlay.