LAGUNA BEACH : School District OKs Balanced Budget

By ANNA CEKOLA

June 25, 1992 12 AM PT

Unlike many school districts in the county, the Laguna Beach Unified School District has adopted a balanced budget for fiscal 1992 without making any major cuts.

The $12-million budget approved Tuesday includes a 4% cost-of-living salary increase for the district’s 200 teachers and other staff members during the coming school year. But for the second year in a row, the district ended up with a modest deficit--about $346,000--which was covered from the district’s $1.1-million reserve.

Chief Financial Officer Terry A. Bustillos said the district is faring better than most during these tough economic times because of its unique funding status.

Although most school districts get most of their funding from the state, Laguna Beach Unified gets a majority of its funding from the city’s rich property tax base. Only 10 cents of every dollar coming into the district comes from the state, Bustillos said.

Still, the district has been hurt by state education cuts and the recession, which has caused a slight decline in the increase of property tax revenue, Bustillos said.

“The Laguna Beach Unified School District is not as wealthy as it was prior to the recession,” he said.

Under the new budget, the district, which has four schools, is expecting an estimated 4% decrease in state funds. To help compensate for some of those losses, officials are trimming administrative costs, including travel and conferences.

Through recent contract negotiations, the district also reduced some medical benefits for employees, a move that could save about $80,000 to $100,000 next year, Bustillos said.

In return, teachers and other staff members recently approved three-year contracts through June, 1995, that carry a total 13.5% salary increase. However, if changes are made in the district’s funding status, the raises would be subject to new negotiations, Bustillos said.

The new contracts for the teachers and classified employees, which have both been ratified by the board, go into effect Wednesday.