O. C. IN BANKRUPTCY : Where School Districts Stand

Capistrano Unified: The district will not place any more money in the county investment pool, Supt. James A. Fleming said. “I would like to see that money go elsewhere, whether a depository or other agency outside Orange County. . . . I think it would be mistake to put any more money into that fund. . . . If they declare bankruptcy, in my mind everything stops.” He also said he hopes to receive state financial assistance, if necessary. “If we don’t have any money, we can’t operate schools. . . . I hope that Gov. Pete Wilson and the Legislature wouldn’t let it happen because the school districts are innocent in this.” he said.

Garden Grove Unified: “We’ve survived many a crisis and this is just one of them,” district spokesman Alan Trudell said. “The important thing is that kids are still learning in the classroom.” Trudell said district officials have been told by the County Department of Education that employees will be paid. Unlike other school districts in Orange County, the Garden Grove district has no debt, having already paid off its bonds, Trudell said.

Irvine Unified: “Forecasting what is likely to happen next is nearly impossible due to the dearth of real information available on the financial condition of the county treasury,” school board President Tom Burnham said. He hopes to get more information at today’s meeting with officials from the county and the Orange County Department of Education.

Laguna Beach Unified: “We’re the child of the county, and the children have to be taken care of, it’s as simple as that,” Supt. Paul Possemato said. The district mailed 144 checks to vendors Wednesday, but Possemato said no more checks will be written until assurance is received from the County Department of Education that all checks will be honored. District officials will ask the county today( to deposit new property tax revenue in an account separate from the bankrupt pool.

Los Alamitos Unified: “We’ve received notice that the county supervisors approved payroll for classified staff this week. Everything we’ve heard is it’s business as normal,” district business manager Ron Murrey said. “With the supervisors declaring bankruptcy . . . we’re hoping it will stabilize the situation.”

Orange Unified: Supt. Robert L. French said, “I feel confident that things will work out.”

Santa Ana Unified: Employees are “just asking what is happening with the bankruptcy,” said Gaylen Freeman, assistant superintendent/business services. “We’re indicating that we’ve been told . . . things will flow as they have in the past.”

Anaheim Union High: “Obviously this has put us in a very dire situation and it’s extremely unfortunate that we are mandated to put our money in a certain area and then have a situation like this occur,” said Rita Newman, assistant superintendent/business services. She believes that county supervisors will release money for the district payroll. “If they don’t,” she said, “we are trying to get together a contingency plan to pay classified people some amount of money.”

Fullerton Joint Union High: “I would like to see that (tax revenue for schools) not be commingled with the pooled money. . . . I would not like to see it mixed with the pool of assets in bankruptcy,” said George West, assistant superintendent/business services. West has received calls from employees and retirees, as well as vendors worried about whether they will be paid. He said he has been assured by the county that payroll checks will be issued for classified employees this week, but has been given no long-term guarantees. “There’s a lot of concern out there,” he said. “I’m telling (callers) we don’t have enough information to give them a good answer, but we have always honored (our debts) in the past.”

Huntington Beach Union High: Assistant Supt. Patricia Koch said, “We need to be calm. We need to be watchful. We need to do everything we can to assist in resolving this problem as quickly as possible.”

Anaheim City Elementary: “I don’t know about (meeting payroll in) coming weeks, but we’re covered for this week,” said Jack Sarnicky, assistant superintendent/business administration. “We met with school employees this morning because we intend to keep them in the loop. . . . They were very cooperative and understanding.” He added that the district’s financial situation “is really dependent on what happens in the next few days. We’re trying to figure out what is happening and hope it works out.”

Buena Park: The district is cutting back on all unnecessary spending while taking a “wait-and-see attitude” on how the county investment crisis will effect district operations, Supt. Jack Townsend said. The district has held up plans to replace office computers, he said.

Centralia: Paul Burkart, director fiscal services, is counting on the county to disburse funds to the district despite the bankruptcy action. “If we do not get releases from the county treasury, we will not be able to meet payroll, but I believe we will. . . . I don’t have any other funds,” he said.

Cypress: Supt. William Eller said he hopes to learn whether the district will be able to meet payroll and other expenses in coming weeks when he meets this afternoon with officials at the County Department of Education. However, he expects that the district’s share of tax revenue will continue to be deposited in the county investment pool. “I think the bankruptcy action will protect that money,” he said.

Fountain Valley: Supt. Robert Sampica’s most immediate concern is to make Friday’s payroll for 308 employees. “I feel very positive that the Board of Supervisors will do everything to support the school districts,” he said.

Huntington Beach City: “We will be able to pay payroll and current obligations. All indications at this point say we’re OK,” said Jerry Buchanan, assistant superintendent. He said that school officials are still counting on revenue to be collected by the county next week, with property tax payments due Monday.

La Habra City: “Our employees are asking where is my next paycheck coming from and when, and that really hurts because our district has been prudent to maintain good reserves and now we’re subject to a major problem,” Supt. Rich Harman said. He expects to learn today from the county if money will be released from the county-operated investment fund for district payrolls.

Ocean View: “From my viewpoint it is business as normal,” said Assistant Supt./Business Patricia L. Young.

Westminster: “My assumption is that this is a paper loss,” Deputy Supt. Barbara Winars said. “Despite the bankruptcy filing, the county is sound.” She said that county officials assured her that all school districts will continue operating as usual, despite the financial crisis.

Saddleback Community College: “I think people are tense and nervous,” said Robert A. Lombardi, district chancellor. “It appears that at least this week, we’ll get the payrolls done, then we’ll have to figure it out day to day. I was told that one vendor refused to deliver today unless we paid with a check. We did.” Lombardi said the district intends to deposit $15 million of tax revenue this month into the state treasury and keep it out of the county treasury.

Saddleback Valley Unified: “The employees are wondering whether they are going to get paid. . . . We’re telling them that we are waiting for the County Board of Supervisors to release the funds,” Supt. Peter Hartman said. He contends that if there are problems getting county funds, the state is obligated to make up the shortfall.