IN THE NEIGHBORHOOD : Bell Gardens: Betting On the Education of Its Youth

In Bell Gardens, the jobless rate is more than 13%, compared to the state rate of 9%, and the average family earns less than $25,000. This puts college out of financial reach for many otherwise qualified Bell Gardens High School graduates. In fact, only about one in six high school graduates go on to college. The irony is that the city has ample financial resources. Thanks in large part to fees generated by the Bicycle Card Club, Bell Gardens has maintained a balanced budget for the last 10 years and accumulated a reserve fund of $15 million. Officials decided to help local teens get a higher education by using its surplus to generate interest-free educational loans in exchange for community service. To date, nine residents have received up to $5,000 each in loans to begin or continue their studies.

THE IDEA

In the summer of 1993, Councilman George Deitch suggests that the city offer interest-free loans to Bell Gardens students in exchange for community service. The loans would be repaid over 10 years or could be reduced by additional community service.

THE DEAL

After researching the issue, the city council votes in February to use $180,000 in interest from a portion of reserves to underwrite the Academic Pursuit Program. Of the 179 students eligible, 25 meet the May application deadline. Nine loans are given out in July to those who have have a cumulative GPA of 2.5 or better and agree to submit transcripts at the end of each academic year. Students can reapply each year for more loan money.

WHERE THE CITY’S MONEY COMES FROM

Bicycle Club fees: 65%

Property taxes and other sources: 19%

State sales tax: 8%

Motor vehicle fees: 8%

THE PAYOFF

For the Students:

SERGIO TAPIA, II., Third year law student, University of Iowa.

“It really came at an opportune time because I was looking for another source of aid to finish my final year. I was very lucky. I’m doing my final year at Whittier Law School. I’m planning to transfer my final (credits) back to Iowa so I can graduate. As part of my community service, I’m going to put together a report reviewing the legal services (the city is) providing now and make suggestions how the city can improve on those services or offer new ones.”

For the city:

* Ten hours of community service for each $1,000 loaned. Projects are designed by the student to reflect their academic interests.

* A more educated community, with closer ties to the city.

* A way to attract families to settle and stay in the city.

THE NEXT STEP

Bell Gardens is investigating ways to:

* offer educational grants in addition to loans.

* include support for students in trade and technical programs.

TO GET INVOLVED

Call (310) 806-7700.

Researched by JAMES BLAIR / For The Times