Schools May Lose $28 Million From State : Budgets: If the Legislature cuts education spending by $2.3 billion, the 20 local districts would have to raid already-tight emergency funds.

Ventura County’s 20 school districts, still reeling from budget cuts last year, would be forced to raid their emergency reserves and look for new areas to cut if the state Legislature adopts a proposal to reduce education spending by $2.3 billion.

Collectively, the county’s schools could lose nearly $28 million and may need to make cuts in staffing, supplies and programs if the Legislature adopts the proposal to help offset a massive state budget deficit, officials said.

“My first suggestion would be to take the keys of all the schools and send them to the Legislature and say, ‘Here, you run them, we can’t,’ ” said Assistant Supt. Leo T. Molitor of the Ojai Unified School District.

Many of the county’s school districts already face budget shortfalls next year. The 3,600-student Ojai Unified School District could lose an additional $873,750, while the Simi Valley Unified School District, the largest in the county with an enrollment of 18,000 students, could lose $4.4 million.

Molitor said his district, which underwent $750,000 in cuts last year, is already having to reduce spending by an additional $200,000 for the new school year.

Because it has drawn heavily from its reserves to balance its budget in past years, the district has been unable to maintain the state’s recommended emergency reserve of 3%.

“Right now we’re at 2%,” Molitor said. As a result, any additional cuts in funding from the state would be devastating, he said.

“We would be looking at serious layoffs in staff and serious cuts in programs,” Molitor said.

Simi Valley officials said it is too soon to predict what kind of action they would take, but that such a large loss in revenues would probably mean eliminating more non-teaching staff positions and special education programs.

“We’ll be going back to the dark ages of education if we have to face cuts like this,” said Assistant Supt. Mary Beth Wolford.

Wolford’s district is already facing a $4.5-million shortfall in its budget for the next year. The district is drawing from its reserves and is considering not rehiring 26 temporary teachers in order to balance its books.

“It would really take a lot of brainstorming to see where we would go” with additional loss in revenues, Wolford said. “All of the vision we have, all of the goals we have, would just be impossible.”

Parents harbor their own fears.

“We’re going to pay for this somewhere down the line,” said Pat Sando, vice president of the 12th District PTA, an organization representing parent groups throughout the county.

“If we don’t put money into education now, we’re going to put it in welfare and jails later,” said Sando, whose three children are enrolled in Conejo Valley schools.

“Every district in Ventura County is cut to the bone,” she said. “So where are they going to cut?”

To help offset an $11-billion state budget deficit, the Legislature has proposed reducing education spending by $2.3 billion, the maximum allowed under voter-approved Proposition 98. That measure guarantees schools 40% of state tax revenues.

Education officials said such a cut would reduce state aid to schools by as much as $250 per student, leaving the state more than $1,000 below the national per-pupil average.

By reducing the amount spent per pupil from $4,672 to $4,422, California would move from 34th to 41st place in student funding in the nation, said William L. Rukeyser, special assistant to state Supt. of Public Instruction Bill Honig.

Ventura County school officials said that while the state’s budget woes look “pretty grim,” they are not panicking.

“There isn’t anybody anywhere who knows what’s going to happen with the budget,” said Ken Prosser, director of business services for the county superintendent of schools office.

“I won’t feel comfortable saying anything until the governor has actually signed the budget,” Prosser said.

Although promised a 7.9% increase in funding for public schools, including a 1.5% cost-of-living increase by Gov. Pete Wilson in January, school district officials planned their budgets conservatively, anticipating no increases in funding.

Last week, Wilson announced a budget proposal that would reduce funding to schools by 1% compared to this year, a move that could trigger even more budget cuts among the state’s school districts.

Even before Wilson disclosed his spending plan Friday, the county’s school officials were braced for another lean year, fully expecting to eliminate more teaching and staff positions, to abolish more special education programs and to continue to put off repairs to buildings.

“We figured if we got the same amount of money as we did last year, that would be the absolutely best” scenario, Prosser said. “And even then the districts would lose.

“You don’t keep school programs on a status quo budget. A status quo budget will still require cuts and layoffs in some districts.”

Barring any reductions in education spending from the state, school districts are proposing a wide range of cuts for the upcoming school year.

The Ventura Unified School District is facing a $2.4-million shortfall in its $57.3-million budget. To make up for the shortfall, teachers will go without a pay raise for the fourth consecutive year.

In addition, 16 elementary teaching posts and 21 secretarial, maintenance and clerk positions will be eliminated. The elementary cuts would raise the average number of students in a classroom from 30 to 32, school officials said.

The district, which slashed $3 million from its budget last year, is also considering eliminating transition classes, which are designed to help students who have finished kindergarten but who are not yet prepared to enter the first grade.

Parents of children who were expecting to enroll in the classes next year have urged the school board not to drop the special program. The board will adopt its budget Tuesday.

The Conejo Valley Unified School District is cutting $2.7 million from its $73.8-million budget. Nine temporary teachers will not be rehired, and up to 30 administrative and non-teaching positions will be eliminated, said Sarah Hart, Conejo Valley’s finance director. Supply and equipment purchases have been cut back by more than $500,000.

“We’ve cut a total of about $6 million in the last two years, so this year it was more difficult because there were fewer areas to cut,” Hart said.

To help offset a 16% increase in its transportation contract, Hart’s district will begin charging students for bus transportation next fall. It will be the only district in the county charging for transportation services--$450 annually for each student.

Administrators said the move will save the district an estimated $400,000.

Pleasant Valley, Moorpark and Simi Valley school districts are also considering charging for home-to-school transportation.

The Oxnard School District has projected a $1.7-million shortfall next year and must cut $650,000 from its $54.2-million budget. As a result, seven temporary teachers will not be rehired and five clerical positions will be eliminated. The remainder of the shortfall will be made up by drawing from the district’s reserves.

“Last year we cut about $3.2 million, so we’re still suffering from that,” said John Fitzgerald, the district’s finance director. “We’ve been squeezed to the point where we’re running as thin as we can go.”

The Simi Valley school district is planning to cover the $4.5-million shortfall in its $75.2-million budget next year by reaching into its reserves.

Although no layoffs or program cutbacks are planned, officials said they do not know how many of the 26 temporary teachers who were hired in September will be rehired.

“They are not in our current budget,” Wolford said.

Santa Paula Elementary school district, one of the lowest-revenue districts in the county, must slash $200,000 from its $12.9-million budget next year.

With only $259,000 in emergency reserves, 1% less than what the state recommends, the district will have to eliminate five secretarial, clerk and maintenance positions.

Assistant Supt. Randall Chase said the cuts are especially difficult because the 3,200-student district was forced to cut two administrative positions and eight teaching positions last year.

“In the last three years, we’ve cut $1.3 million,” Chase said. “If the state wants us to cut more, I don’t know what we’re going to do.”

Rising health care costs are blamed for driving up expenditures in several school districts. After employee salaries, health care costs represent the single biggest expense of school districts, officials said.

For example, the Ventura district this year will spend $15 million on health and welfare benefits, up $3 million from last year. A large chunk of that--$3.6 million--will be spent on all retirees, who receive lifetime medical benefits.

“We can no longer afford to pay it,” said Joseph Richards Jr., the district’s budget director.

Richards said the district has been providing lifetime benefits to retired employees since 1975. The benefits program began with 47 retirees at an annual cost of $13,300.

“We now have more than 700 retirees,” Richards said.

Richards said the district is working with the employees union to try to come up with a plan to either limit the amount of coverage offered to retirees, as most districts do, or eliminate such benefits altogether.

John Gennaro, president of the Ventura Unified Education Assn., said teachers understand the magnitude of the problem and are being as cooperative as they can in “finding an equitable and reasonable solution.”

“I don’t think there’s any question that the current program as it stands right now simply can’t be maintained,” Gennaro said. “We’re looking at this as a real long-range issue.”

However, Richards said it is essential the district resolve the issue this year, rather than put it off. Otherwise, he said, Ventura’s schools will suffer even more.

“We don’t have a choice,” Richards said. “If we didn’t increase class size this year, what would we do? How much can we increase class size?”

The Pleasant Valley School District this year will pay a total of $2.8 million for health benefits, a 12% increase over the previous year. More than $600,000 will go to benefits for retirees.

Jan Maez, Pleasant Valley’s budget director, said teachers with at least 10 years experience who retired before 1984 received lifetime medical benefits. There are now 55 people receiving lifetime benefits.

Maez said the district changed its benefits policy for retirees in 1984.

“There was a recognition by everybody that granting lifetime benefits was going to bankrupt the school district,” she said.

Still, Maez said the district continues to provide limited coverage for retirees until they become eligible for Medicare. She said she doesn’t anticipate the district eliminating retiree benefits in the future as a way to cut expenses.

“I don’t know if that could ever happen,” Maez said. “Taking those benefits away is like taking salaries away.”

Other school districts--including Conejo Valley, Simi Valley and Fillmore--have managed to contain their health care costs over the years. Many districts have special committees that work on revising their insurance coverage each year to keep a lid on costs.

“We haven’t had an increase in health care costs for three years,” said Hart of the Conejo Valley district.

Hart said the district, which plans to spend $7 million on health benefits next year, has a number of restrictions on its retirement benefits that save the district money.

To be eligible for retirement benefits, for example, employees must be between 55 and 65 years old and must have between 15 and 20 years of experience.

Hart said coverage is discontinued after a retiree becomes eligible for Medicare. Also, the district has placed a cap on the number of employees who can receive the benefits. No more than 10% of the district’s employees can apply for coverage, and employees are accepted on a first-come, first-served basis, Hart said.

As a result, Hart said the district is spending a total of $134,000 a year on retiree benefits.

“It’s actually a savings to us,” Hart said. “Because these teachers are retiring at the high end of the pay scale, we can hire younger teachers at cheaper salaries.”

Meanwhile, school officials said they will just have to sit tight until the Legislature decides what to do about education funding.

Assemblyman Jack O’Connell (D-Carpinteria), who sits on the budget conference committee, said he does not support the proposed education cuts.

“I do not plan on supporting any budget that takes $2.3 billion away from the schools,” O’Connell said. “And I can tell you the Democratic caucus is in lock step in supporting the integrity of Proposition 98.”

Some state officials have recommended rolling over at least a portion of the proposed school cuts to 1993-94. But that idea has been met with strong resistance from Republican lawmakers.

State Assemblywoman Cathie Wright (R-Simi Valley), who also sits on the budget committee, has suggested cutting administrative costs, which would include eliminating county education offices, to reduce the financial blow to schools. Wright said she believes too much is being spent on administration and not enough in the classroom.

“What I’m saying is, let’s look at how we can improve the system,” Wright said. “I believe education can get more money if we look at these reforms,” like reducing administrative overhead.

But county schools Supt. James F. Cowan said he is not worried about losing his job.

“It’s easy to say these things, like, ‘Let’s wipe out management,’ ” Cowan said. “But I don’t think it’s very realistic.”

In addition to issuing payroll checks to the county’s 16,000 school employees, Cowan said his office is responsible for monitoring school district budgets. It also manages several school sites and programs for the handicapped, children of migrant workers and students in the Juvenile Court system.

“There would be a vacuum that somebody would have to fill” if his office were eliminated, Cowan said.

Still, Cowan said he understands that his office is not immune from the chopping block.

“When you’re in tough times, you’ve got to look at everything,” he said. “At times like these, people become like piranhas.”

School Funding Outlook

Ventura County school districts are drawing heavily from their diminishing reserves to get them through the new 1992-93 school year. Although faced with rising costs for salaries, benefits, transportation and utilities, the districts will have to make do with less money from the state this year. Simi Valley Budget for 1992-93: $75.2 million Deficit: $4.5 million Reserves July 1992: $7.4 million Estimated reserves July 1993: $2.5 million Conejo Valley Budget for 1992-93: $73.8 million Deficit: $2.7 million Reserves July 1992: $3.0 million Estimated reserves July 1993: $1.2 million Ventura Unified Budget for 1992-93: $57.3 million Deficit: $2.4 million Reserves July 1992: $1.8 million Estimated reserves July 1993: * Oxnard Elem. Budget for 1992-93: $54.2 million Deficit: $1.7 million Reserves July 1992: $5.3 million Estimated reserves July 1993: $3.6 million Oxnard Union High Budget for 1992-93: $48.1 million Deficit: O Reserves for July 1992: $1.5 million Estimated reserves for July 1993: $1.3 million Hueneme Elem. Budget for 1992-93: $28 mill. Deficit: $500,000 Reserves for July 1992: $1.2 mill. Estimated reserves for July 1993: $850,000 Pleasant Valley Elem. Budget for 1992-93: $25.4 million Deficit: $955,000 Reserves for July 1992: $1.8 million Estimated reserves for July 1993: $855,000 Moorpark Elem. Budget for 1992-93: $21.9 mill. Deficit: $860,000 Reserves for July 1992: $660,000 Estimated reserves for July 1993: * Ojai Unified Budget for 1992-93: $14 mill. Deficit: $200,000 Reserves for July 1992: $281,000 Estimated reserves for July 1993: * Santa Paula Elem. Budget for 1992-93: $12.9 mill. Deficit: $152,000 Reserves for July 1992: $259,000 Estimated reserves for July 1993: $240,000 Fillmore Unified Budget for 1992-93: $12.9 mill. Deficit: 0 Reserves for July 1992: $1 mill. Reserves for July 1993: $380,000 Rio Elem. Budget for 1992-93: $10.5 million Deficit: $470,000 Reserves for July 1992: $785,000 Estimated reserves for July 1993: $330,000 Ocean View Elem. Budget for 1992-93: $9.5 million Deficit: 0 Reserves for July 1992: $259,000 Estimated reserves for July 1993: * Oak Park Unified Budget for 1992-93: $8 mill. Deficit: $53,000 Reserves for July 1992: $800,000 Estimated reserves for July 1993: $747,000 Santa Paula Union High Budget for 1992-93: $5.8 million Deficit: $213,000 Reserves for July 1992: $553,000 Estimated reserves for July 1993: $229,000 Note: Estimates for 1993 reserves could drop even more if the state Legislature decides to cut the budget for public education, officials said.

* Figures not available because some districts have not decided whether to use reserves to balance budgets or to make up difference with cuts in other areas.

Sources: School districts

Effects of Proposed Education Cuts

Projected loss in revenues to Ventura County’s 20 school districts if the Legislature decides to cut $2.3 billion in education spending for the next school year.

Average Projected Daily Lost District Attendance Revenues Simi Valley Unified 17,788 $4,447,000 Conejo Valley Unified 17,025 $4,256,250 Ventura Unified 14,799 $3,699,750 Oxnard Elem. 11,963 $2,990,750 Oxnard Union High 10,571 $2,642,750 Hueneme Elem. 7,267 $1,816,750 Pleasant Valley Elem. 6,425 $1,606,250 Moorpark Unified 5,241 $1,310,250 Ojai Unified 3,495 $873,750 Santa Paula Elem. 3,196 $799,000 Fillmore Unified 3,280 $820,000 Rio Elementary 2,572 $643,000 Ocean View Elem. 2,365 $591,250 Oak Park Unified 1,744 $436,000 Santa Paula Union High 1,202 $300,500 Mesa Union 356 $89,000 Somis Union 325 $81,250 Briggs Elem. 322 $80,500 Mupu Elem. 101 $25,250 Santa Clara Elem. 30 $7,500 Total 110,067 $27,923,750

Source: State Department of Education and Ventura County Superintendent of Schools Office.