Assembly OKs $88-Million Rescue of L.A. Schools

An emergency $88-million bailout for the Los Angeles Unified School District to help avoid layoffs of 1,900 teachers was sent by the Assembly to Gov. Pete Wilson’s desk Wednesday without a vote to spare.

A spokesman for the governor said Wilson was still studying the bill and had not yet taken a position on the legislation sponsored by Assemblyman Dave Elder (D-Long Beach). The bill received a 41-30 lower house vote, the exact number required for approval. It previously passed the Senate by a 22-6 margin.

The measure would allow the Los Angeles school district to postpone paying the 8.25% employer contribution to the State Teachers Retirement System for six months, from January to June, 1992. After that, the school district would be required to contribute at the standard rate for six months, then start paying the retirement fund at the higher rate of 8.5% for 20 years. Elder said the formula is designed to prevent the fund from being jeopardized.

The district generally contributes about $10 million a month to the retirement fund.

Opponents of the legislation called it a “raid” on the teachers retirement system that not only set a “rotten precedent” but also would have a “devastating impact on retired teachers.”

However, Elder said, “we need it for the kids. And the district is going to pay it back.”

The legislation would also let the San Francisco Unified School District save an estimated $6 million by deferring payments into the teachers retirement system.

“You can think of many reasons why to vote no on this bill,” said Assemblyman Tom Bane (D-Tarzana), who supported the measure. “There is only one good reason to vote yes--the kids in Los Angeles face teacherless classes unless we pass this bill.”

An opponent, Assemblyman Ross Johnson (R-La Habra), charged that “the Los Angeles Unified problems are largely their own” and should be resolved by the district.

The bill had the support of district officials and teachers union leaders.

The school board could decide as early as next week how to use the money, and district officials said a top priority will be restoring some of the teaching positions and programs cut at the schools. About 1,900 probationary teachers were laid off this year because of budget cuts.

“The first priority would be restoring the cuts to the classroom level, then working up from there, depending on how far the money would last,” Assistant Supt. Frances Nakano said.

United Teachers-Los Angeles Vice President Denise Rockwell-Woods said the union would like to see some of the money used to fund an early retirement program to provide bonus payments to older teachers and administrators who leave the district.

That would allow schools to rehire some of the younger teachers who were laid off when class sizes were increased.

But Rockwell-Woods said the new allocation would not affect talks over employee pay cuts requested by the district, and the union does not want the money used for salaries of current employees.