Settlement of L.A. Teachers Dispute All but Signed, Brown Says : Education: The Speaker and district officials disagree on whether state permission is needed to free funds for a 2% salary restoration. Gov. Wilson criticizes pact.

Assembly Speaker Willie Brown emerged Thursday from a Sacramento meeting with top Los Angeles school district and teachers union officials saying their contract settlement is all but finalized and that he does not believe the district needs special state permission to finance the $36-million deal.

“I will not be requesting any waivers at this time,” said Brown, who as mediator forged the accord between the two sides last month, averting a strike.

The Brown assessment appears to conflict with a financial report approved by the school board Monday stating that the district can only make good on the contract promise to restore 2% in teacher salaries by raiding restricted accounts for textbooks and school supplies. Under state law, the district must seek State Board of Education waivers to dip into those funds.

In the state-mandated budget report, the district projected a potential $60-million shortfall on June 30--a deficit that included the $36-million cost of improving the salaries this year and $24 million in possible state funding shortfalls.

Supt. Sid Thompson said Thursday that he does not know how Brown intends to find the money. Thompson said the financially beleaguered district must have additional money to pay for the settlement and that it is depending on Brown to secure the funds.

“As far as we are concerned the money is part of the settlement,” Thompson said.

Brown said the district will not be insolvent as a result of the agreement and that no additional state funds will be allocated to Los Angeles to make the deal work.

He said he is extraordinarily optimistic that federal funding for public education in Los Angeles will increase. Last week, Brown requested more than $50 million in job training and special education funds from the Clinton Administration. If the money comes through it would free up general fund money to finance the teachers contract.

Under the Brown financial plan, the district is to use its $30-million emergency reserve fund to make the salary payments. Brown had said earlier that he would use his considerable political clout to help the district obtain waivers to use the restricted accounts.

The nearly completed contract came under sharp criticism Thursday from Gov. Pete Wilson, who for the first time assailed the agreement. His education adviser, Maureen DiMarco, said earlier that she disapproved of the financial terms.

Wilson said that he would not expect the State Board of Education, whose members are Republicans, to approve waivers and “I don’t think it’s very likely” that any state legislation to help the district win them would be passed.

Wilson predicted that the settlement “is going to have real problems with parent groups. It ignores their rights as parents to be involved in their children’s education.”

When informed about Wilson’s comments, Brown said: “The governor has never seen the agreement. . . . He’s entitled to his thoughts. I think I’m a better lawyer.”

Several significant provisions in the contract empower teachers who meet the qualifications to teach a particular grade or subject to select their class assignments by seniority. Under the current system, principals--who often but not always work with teachers on their assignments--have the final say. Thompson has been opposed to the new provisions.

Brown, although declining to say how he ruled on the contested issue, indicated that the provisions have not significantly changed.

“Currently, the district has teachers participating in the selection of their assignments and that process will continue and it is strengthened,” he said.

Once the contract is signed by both sides and ratified by the school board, it must be left open for a 10-day period for review by the public and Los Angeles County schools Supt. Stuart Gothold.

Under state school finance laws, decisions about the district’s financial soundness rest with Gothold. He must review the district’s midyear report and the contract settlement.

He said he has concerns about the district’s budget and might give it only a qualified approval, which would require him to appoint a financial advisory committee to help the district. He said he will issue a statement within two weeks on the matter.