IRVINE : 3rd Round of Layoffs Proposed

The consequences of being the largest school district investor in the collapsed county bond pool are taking shape in the Irvine Unified School District, where trustees approved a third round of potential layoff notices this week.

School district budget planners say investment pool losses will eventually cost the district $12 million and take a decade to repay.

Irvine Unified will pay $1.2 million a year in combined interest and principal payments over the next 10 years to cover an estimated $8.5-million loss.

The school board this week voted to cut $2.2 million from next school year’s $100-million budget and eliminate the jobs of about 63 classified employees, ranging from teacher assistants to custodians. The district had previously sent notices of potential layoff to 120 teachers and 30 administrators.

“This is as severe as it has ever been in this school district,” interim Supt. Dean Waldfogel said. “We are losing key people in all classifications.”

Irvine Unified had $107 million on deposit in the investment pool when the county declared bankruptcy Dec. 6. Irvine is one of five county education agencies that borrowed heavily to make an additional investment in the county pool. The district is seeking an extension of the June 13 due date for $54.5 million in bond debts.

“This is what we’re forced to do because of this mess and I’m really sorry,” school board member Michael B. Regele said of district layoffs.

The district’s administrative services are taking the brunt of the budget cuts--about $1.7 million--compared to $500,000 in cuts to classroom-related services. Trustees plan to make final decisions on layoffs and budget cuts June 6 when they approve the district’s tentative budget.