TUSTIN : Decline in Students Adds to District’s Financial Problems

A drop in enrollment has added to the fiscal woes of the Tustin Unified School District already reeling from the effects of the Orange County bankruptcy.

The district had 250 fewer students than projected for the 1994-95 school year, depriving the district of more than $700,000 in expected income.

In addition, the district lost $900,000 in interest earnings from its investments in the now bankrupt county pool. An additional $560,000--or 23% of the $2.4 million of the general fund deposited in the collapsed county treasury--could also be lost if, at worst, the county fails to meet its obligations.

But despite these financial blows, Paul Fisher, the assistant superintendent for business services, said at the school board meeting Monday there will be no layoffs of teachers and district employees, at least this school year.

Fisher said the school district also will end up with about $2.6 million in reserves at the end of the fiscal year, which is 1% higher than the state-mandated 3% contingency requirement.

Trustees gave the financial report, which will be submitted to the state, a “qualified” certification, because of the uncertainty spawned by the county’s bankruptcy.

The financial estimates were based on the premise that the district will receive 77 cents on the dollar of its $12.2-million investment in the county pool.

“We always plan for the worst,” Fisher said. “We know we’ll get 77% . . . but the rest, we don’t know how much we’ll get, and when.”

School districts could receive 90% of their money up front and the rest in IOUs under a plan currently being worked out between the county and its creditors.

Brad Lantz, the district’s director for student services, said that 195 high school students either did not enroll at the start of the school year as expected or have dropped out during the school year.

The district has 12,735 students, of which 3,284 are in high school, Lantz said.