PLACENTIA/YORBA LINDA : No Teacher Layoffs Planned by District

Relying on the county’s pledge to repay school districts 90% of the funds they had invested in the county pool by early June, school officials announced they will not issue any layoff notices to teachers.

“We have ample funds in various (accounts) to absorb the shortfall while waiting for the county to repay us,” said Kim Stallings, assistant superintendent for business for Placentia-Yorba Linda Unified School District. “We think we’re not going to have a problem with our fund balances with 90% (repayment).”

Under a settlement reached this week with the committee representing the nearly 200 agencies that invested in the county’s now-bankrupt investment pool, the county has offered to repay school districts 76 cents on the dollar in cash, with an additional 14 cents in “recovery notes” payable in early June.

It is unclear how or when the county would repay the remaining 10% in claims.

Stallings said the district would transfer money from restricted accounts to the general fund in order to meet payroll and other expenses until the entire amount is repaid.

“We have the right to borrow from restricted funds if we intend to pay it back,” Stallings said. The plan to repay restricted funds can be spread out over several years.

While Supt. James O. Fleming recommended that the governing board not issue layoff notices, he warned that other cost-cutting measures might be needed.

“We may not fill all vacated positions, and there may be some reductions in different departments,” Fleming said.