BREA / FULLERTON LA HABRA : Districts Approve Settlement on Funds
School districts in Fullerton, La Habra and Brea have approved a settlement to recover their funds from Orange County’s failed investment pool.
Trustees of the La Habra City School District, Fullerton Joint Union High School District, Fullerton School District and Brea Olinda Unified School District this week all chose Option A, which will return about 76% of the investment in cash, another 14% in notes and the rest in IOUs.
Lowell Joint School District, a Los Angeles County district that has schools in La Habra, also voted for Option A, under which the districts waive their right to sue the county.
Settling “is clearly a leap of faith,” the school districts’ financial consultant, Jon P. Schotz, told the Brea Olinda School Board. “It is your money, and the county is holding it hostage.”
When the county filed for bankruptcy protection Dec. 6, Brea Olinda had $9 million in the pool; Fullerton School District, $4.9 million; Fullerton Joint, $25.6 million; La Habra, $13 million; and Lowell, $224,115.
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