Assemblyman Tucker’s Bill Aims to Give Schools More Control Over Funds : Finances: Bill easing rules on use of property sales proceeds could help El Segundo, Lawndale, Hermosa Beach and Manhattan Beach districts.

In a move that could improve the outlook for some South Bay school budgets, an Inglewood Assemblyman has introduced legislation that would boost the ability of small school districts to tap proceeds from the sale of their surplus property.

The bill, by Democrat Curtis Tucker Jr., would make it easier for school districts with 5,000 students or less to use property sale proceeds to help offset operating costs, such as teacher pay and book purchases.

Present state law earmarks such funds for school construction and major school maintenance projects.

Supporters say the measure would benefit small school districts that are “property rich and cash poor” as a result of declines in enrollment and per-student state operating allocations. Among those they mention are districts in El Segundo, Hermosa Beach, Manhattan Beach and Lawndale.

“Everybody wants us to give a better education for the children, but nobody equates that to dollars and cents,” said Nancy Wernick, one of two El Segundo Unified School District trustees who brought the issue to Tucker’s attention. “Without funds like these, we don’t have the wherewithal to do the job.”

Although Tucker’s bill enjoys backing from many local school officials, it is likely to face opposition in Sacramento. Some state education officials call the measure unnecessary, pointing out that school districts already can use funds from surplus property sales to offset operating costs if they get permission from the state.

And key lawmakers appear reluctant to loosen existing state controls on property sale proceeds. They point out that California’s numerous fast-growing school districts are inundating the state with demands for construction funds.

If other districts are allowed unfettered use of property sale proceeds and then experience sizable enrollment gains, they will have to turn to the state for construction money, too--intensifying the competition for funds.

“Every time somebody tries something new like this, alarm bells go off,” said state Sen. Leroy Greene (D-Carmichael) of the State Allocation Board, which oversees state spending on school construction. “Everybody tries to get in and solve their own problems without thinking about anyone else’s.”

School districts have been allowed two exceptions from state controls on the use of property sale proceeds. Under some circumstances, districts have been allowed to use interest earned from these proceeds to bolster their operating funds. However, they will have to begin phasing out that practice by June 30.

Districts can also spend their property money or interest from it on day-to-day operations, if they get permission from the State Allocation Board. Bill Van Gundy, the board’s director, says the panel willingly grants permission in these cases if it finds the district will not need major construction or maintenance projects in the next five years.

“Our feeling is that the (Tucker) bill is not necessary,” Van Gundy said Friday. “If a district has a need to use this money on operations, they can come to our board and make an appeal.”

But South Bay school officials say the Allocation Board route is cumbersome, time-consuming and subject to Sacramento political pressures. Under the Tucker bill, they say, decisions on property sale proceeds would be made in a more appropriate forum.

They also point to the importance of the funds at stake.

Interest from property sale proceeds accounted for nearly $1 million of the Manhattan Beach City School District’s $9.5-million operating budget in fiscal 1989-90, according to district business manager Peter Schiff.

Asked what would happen if the cash were no longer available, Schiff said: “It would be very difficult for us to handle that.”

In El Segundo, school officials say they hope to sell a former elementary school site on Imperial Avenue for $8 million to $10 million--and use interest from the proceeds for school operations. Among the priorities: to restore arts, vocational training and sports programs eliminated in budget cuts brought on by enrollment declines.

“This allows small school districts that are not growing anymore to fend for themselves,” said Ken Schofield, the other El Segundo district trustee who urged Tucker to introduce the surplus property legislation.

Tucker’s bill would allow school districts of 5,000 students or less to decide whether or not to use interest from property sale money for district operations. The districts could also offset operating costs directly with the sale proceeds--provided their governing boards first determine that no construction and large-scale maintenance projects are needed in the next five years.

“The bill puts the control at the level of the local board, and that’s the critical question,” said Schiff, of the Manhattan Beach district. “It gets the control into local hands that are more sensitive to local concerns than Sacramento or Washington.”

Assemblyman Robert J. Campbell (D-Richmond), another State Allocations Board member, says such arguments could face a cool reception in Sacramento. Lawmakers representing fast-growing school districts will be reluctant to back legislation that they think could eventually result in increased competition for school construction dollars, he said.

But supporters of the Tucker bill vow they will put up a fight.

“I’ll go up and live in Sacramento for six months if I have to,” Wernick said. “This bill will not die for lack of attention.”