HUNTINGTON BEACH : High School District to Cut Budget

In a double blow of bad financial news, officials of the district that governs high schools in Huntington Beach, Westminster and Fountain Valley announced plans to slash $2 million from this year’s budget and seek cuts in teacher and staff pay or benefits for next year.

The proposal to cut pay or benefits is subject to negotiations with the unions that represent employees. The District Educators Assn., which is the teachers’ union, has announced it wants a 5% pay hike and no reduction in benefits for teaching staff next year.

But district officials, at a school board meeting Tuesday night of the Huntington Beach Union High School District, said the system this year is spending $2.4 million more than it receives.

“We cannot continue deficit spending,” said Assistant Supt. Patricia Koch.

Koch said that declining student enrollment and lack of state-funded cost-of-living adjustments have caused the district to be the red this school year. In addition, she said, the county’s bankruptcy may cause the district to lose another $1.4 million in investment interest this year.

Koch told the board Tuesday night that the worst-case scenario is for the district to lose 27%, or $5.3 million, of the $19.8 million it had in the county pool. Such a loss would wipe out all the district’s reserves and force seeking help from the state, Koch said.

School board President Michael Simons said the district’s position is that the county must pay back all school money in the pool.

In announcing the proposed $2-million budget cut this year, district officials said the areas of cuts are yet to be determined.