O.C. Officials Cautiously Optimistic

Despite Gov. Pete Wilson’s turnabout on Proposition 98 and the state Senate’s decision to leave education funding mostly intact, Orange County school officials on Monday said they will not change their budgets until the state finalizes its own.

“I’m delighted with the switch the governor made and the change in his stance with Proposition 98,” said John F. Dean, county superintendent of schools. “But we’re not home free (by) any stretch of the imagination.”

Although pleased by news of Wilson’s move away from scrapping Proposition 98, which guarantees 40% of the state budget for education, county educators interviewed Monday were guarded in their reactions. Budget crises around the county, they said, will probably continue even if Proposition 98 survives.

“This has been a pleasant surprise. All we have been hearing about is cuts and more cuts. It’s a relief,” said Sheila Benecke, president-elect of the county Parent-Teacher Assn. But she cautioned that the new development from Sacramento may not amount to more than short-term relief for money-starved districts.

Even with guaranteed funding, local officials said, key questions remain about the proposed education budget, including exactly how much schools will receive.

Because Proposition 98 is tied to the state budget, school officials said they will wait to see exactly how the state’s $14-billion deficit will affect education funding before they consider restoring programs dismantled earlier this year to balance their budgets.

“The budget is not over until it’s over,” said Carole F. Bailey, director of fiscal services for the Capistrano Unified School District. “Until the state budget is through the Legislature and signed by the governor, I’m not going to recommend we undo anything.”

Capistrano Unified recently cut $4 million from its budget for the coming fiscal year. Money-saving measures included laying off four employees, including two elementary music teachers, increasing the average class size by one student and eliminating or cutting more than 30 programs.

Placentia Unified School District Supt. James O. Fleming, whose district faces $9 million in cuts in its 1991-92 budget, said that under the Senate proposal, Placentia Unified could gain about $600,000. He fears that the current budget development gives the impression that everything is all right with next year’s fiscal picture.

“Our own teachers read the paper and say, ‘Oh, gee, everything is OK,’ ” while the district remains faced with deep cuts, he said.

The governor’s move, however, will have a positive effect on the Irvine Unified School District, which was denied a potential $1.4 million in extra annual revenue last week when voters struck down Measure P, a proposal for a districtwide property tax.

Irvine Unified Supt. David E. Brown said retaining Proposition 98 will “soften the blow” of the Measure P defeat and may allow the district to save its mentor-teacher program and keep freshman English classes the same size. But like other administrators, Brown was only cautiously optimistic about the news from the Capitol.

There are still “medium-sized question marks,” Brown said.

In the Santa Ana Unified School District, officials said Wilson’s announcement will not immediately change the status of hundreds of employees who received layoff notices last month.

“I’m pleased that the legislators have chosen to fund the children,” said Santa Ana Unified Supt. Rudy M. Castruita. “But even with the extra money coming in, we still can’t restore all our programs.” The district may be able to follow a prioritized list of program or personnel restorations when the money becomes available, Castruita said.

Saddleback Valley Unified School District, which has laid off 55 support staff members and 82 teachers, will also consider reinstating some programs based on priority, said Supt. Peter A. Hartman, who has made a list of recommendations to the school board.

Times correspondents Ted Johnson, Tom McQueeney and Terry Spencer contributed to this report.