ORANGE : School Budget of $102.5 Million OKd

Trustees of the Orange Unified School District have unanimously approved a $102.5-million spending plan that projects a shortfall of $444,000 and siphons $1 million from reserve funds.

Joyce Capelle, the district’s chief fiscal officer, blamed the tight budget on the state fiscal crisis, a $1.2-million reduction in state lottery funds and a $2.4-million increase in employee salary and benefits last year.

But because the district began budget reductions early in the school year, Orange Unified might not need to make the sweeping cuts implemented by other districts, she said.

“We took a healthy scalpel to ourselves in January,” Capelle said. “I feel sorry for the districts that are going through this in a big way now.”

District officials first took steps to stem the growing deficit last September, when they cut 35 resource teachers and reduced spending for conferences, travel, legal fees and other areas.

The approved spending plan follows an 18-month strategy outlined in January, which included the elimination of 59 jobs to save the district about $2.5 million.

Most of those cuts were achieved through attrition, retirements and reassignments. The district is still negotiating with the teachers union to cut 15 non-classroom certificated postions, Capelle said.

The district has also reorganized some bus routes to save $200,000. By the end of the 1991-92 school year, the district will have trimmed $5.2 million from the budget.

District officials project enrollment to grow by 250 students next year, meaning an additional $1 million in state revenue. However, district spending for books and supplies is expected to remain at the same level as last year, meaning some library books, craft supplies and other resources might be sacrificed to balance the supply budget, Capelle said.

The budget includes borrowing $1 million from the district reserve fund, leaving a 2% reserve. State guidelines recommend a 3% reserve. The district will need to submit a plan to the state outlining how it will rebuild the reserve fund.