FOUNTAIN VALLEY : Schools Face $750,000 Shortfall Due to Crisis

The Fountain Valley School District faces a projected $750,000 budget shortfall because of anticipated losses caused by the county bankruptcy.

Marc Ecker, an assistant superintendent, outlined various budget options to the board of trustees last week should the district lose some of the $5.4 million it has in the county’s failed investment pool. Ecker said the district has no plans to lay off teachers or other employees.

Budget options included the best-case scenario that if the district lost 10% of its money in the county pool and sold a vacant school site, it could give teachers and other workers a long-awaited pay raise. It would also be possible to restore library programs and custodian hours cut last year.

The district is negotiating a final agreement to sell the vacant school site to the Presley Co., Southern California Division, for $5.6 million. However, trustees postponed approval Thursday of the agreement because contract language is being finalized.

“We’re real hopeful that the land sale is going to go through, and that will help us,” board President Catherine Hacker said. “We have a better outlook than many other districts do.”

Ecker said the worst-case budget scenario is if the property sale fell through and the district only received 77% of its money from the county. The result would mean cutting school programs to offset the projected shortfall.

The last salary increase for teachers and other district employees was four years ago. He said employees are either at or near the bottom of the salary scales in their respective positions.

Another budget study session will be April 27. Adoption of the 1995-96 budget is scheduled for June.