Newport-Mesa School Board Assailed Over Bond Crisis : Education: Residents vent anger over situation that has frozen $80 million in school funds. Some suggest a citizens advisory panel to aid trustees.

The Newport-Mesa Unified School District fielded a barrage of criticism this week over the district’s involvement in the Orange County investment pool. Trustees also heard many suggestions on how to ease the district’s financial woes in the wake of the county bankruptcy.

For the first time since the Dec. 6 bankruptcy filing that left 187 public agency-investors in the lurch, the board gave the community an open mike at its meeting. The district has about $80 million tied up in the county’s bankruptcy proceedings.

“I feel badly to have to say to you as public servants that you are a disappointment to this community,” said Evelyn Shatzen, a real estate agent and former educator and counselor.

“We face a school district that is, by definition, insolvent,” said Chriss Street, a parent and chief executive officer of Comprehensive Care Co.

Street suggested “allowing some CEOs in the area to form an advisory committee for the board,” a proposal that won hearty board support. Others offered ideas ranging from using qualified volunteers for substitute work to offering early retirement for teachers.

Street even suggested that the district might be in enough trouble to go into a state receivership, which would put the state in charge if the district bailed out financially. Finance Director Michael Fine conceded that the board would have to consider that among other options.

By the end of the meeting, the board had passed a resolution to demand 100% restitution from the county and agreed to form a citizens advisory committee, review the work done by legal consultants on the bankruptcy and survey the community to set priorities for when, or if, cuts have to be made.

In a related matter, the president of the district’s teachers union said the group rejected a proposal to give the district an extra month to let teachers know if they would be laid off in the next school year. Union spokeswoman Maya Decker said teachers facing layoffs for the 1995-1996 school year need time to find other work.