MISSION VIEJO : Bankruptcy Loss Hurts College District Budget

Orange County’s bankruptcy cost the Saddleback Community College District about $2.3 million, spokeswoman Diane Riopka said, resulting in an annual budget that is 2% smaller than last year’s.

District trustees last week approved a $69.9-million budget for fiscal 1996, which began July 1. To help balance the budget, the board cut $680,000 for capital outlay, according to a report.

The college district--like other public education agencies--was required by law to put its money in the county’s investment pool, which collapsed in December, triggering the bankruptcy filing.

Contributions by the district to a retirement fund also dipped by $500,000 in the new budget, representing a 5% decrease.

The cut will not affect retired district employees, Riopka said.

Spending for district salaries rose by 3%, according to the report.

The district could not set aside money for new instructional equipment or materials, Riopka said.

The final budget was slightly lower than one envisioned a few months ago by district officials because revenue was not as high as anticipated, Riopka said.

Meanwhile, enrollment at the district’s two colleges is down by 1%, according to figures released Tuesday to the state.

As of Tuesday, there were 30,430 students at Saddleback College and Irvine Valley College, Riopka said.

That compared to 30,679 students during the state reporting period last year.