SAN JUAN CAPISTRANO : School Plan Would Draw Down Savings

The Capistrano Unified School District would deplete its $7-million savings accounts by about half during the next fiscal year under a budget plan unveiled last week.

Under the budget to be acted upon by trustees at their meeting next Monday, the district will spend $109 million in the fiscal year starting July 1 while receiving $106 million in revenue--an increase of $3 million over this year--from state, federal and local grants and taxes.

The district recently slashed more than $4 million from the proposed budget by laying off four employees, cutting several programs and increasing its average class size by one student.

District officials said the additional $3 million in revenue is misleading because the 26,000-student district will have 1,000 more students next year, and the cost of its employee health plan is expected to increase by almost $2 million.

Trustees are split on depleting the district savings, which were reduced by $3 million this fiscal year. Most say that making too many cuts would throw the district into chaos and devastate student and teacher morale.

“If we start cutting more than is necessary at this point, we might get people rebelling,” Trustee Annette B. Gude said. “If we only make cuts when they are necessary, people will understand.”

But Trustee E.G. (Ted) Kopp said the district should make more cuts now rather than wait until the district’s savings are fully depleted. He suggested that the district increase its average class size by two instead of one, which would decrease the number of teachers needed, or ask junior high teachers to teach six classes daily instead of five. He said either proposal would allow the district to avoid spending its savings.

“I’m making these proposals because if we don’t do something, next year and especially the year after we are going to have to make tremendous cuts,” Kopp said.

Under the plan, the district would spend $92 million on salaries and benefits, which make up almost 90% of its budget. The amount is an increase of 6% from the $87 million spent this year. It includes $50 million for teacher salaries, $3.7 million for principal and vice principal salaries, and $888,000 for district administrator salaries. The district will spend $18.5 million on the salaries of non-teaching employees such as secretaries, clerks, bus drivers, custodians and cafeteria workers.

The employees’ health-care insurance will cost the district $9.7 million, up from the $7.9 million spent this year, a 22% increase.

The district will spend $5.3 million for books and supplies, up from $4.9 million this year.