Laguna School Workers’ Pay Cut OK’d

In an emotional public meeting, the school board Tuesday voted unanimously to accept a host of voluntary pay cuts offered by employees from custodians to the superintendent to help the Laguna Beach Unified School District avoid a county takeover of its finances.

The offers brought one board member to tears.

“You’ve given more than you have ever given,” Trustee Karen Linden told those in attendance. “I’d like to tell you that we appreciate it deeply.”

Earlier Tuesday, classified workers voted by a 2-1 ratio to accept a 5% pay cut, and the board ratified that agreement that night. The board also accepted an offer by principals and other nonunion workers also to take a 5% pay cut.

Those cuts are retroactive to July 1, meaning 7.5% will be deducted from their paychecks until the end of the fiscal year.

The board also approved the acting superintendent’s proposal to cut his $8,000 monthly salary by 20%, retroactive to September when he was hired.

The district’s $13.3-million budget, which is short about $1.3 million, has been rejected by the county, a first for any district in Orange County. School officials have until Nov. 30 to create a balanced spending plan or the county will take control of the district’s books.

District officials have said the problem can only be solved by borrowing about $800,000 and slashing salaries by about $500,000. More than 85% of the district’s money pays salaries.

On Tuesday, school officials expressed optimism about the latest developments.

“We’ve been working hard for a number of months, and things are just coming together,” said Jan Vickers, the board president, who earlier this month was voted out of office. “That’s how these things happen.”

The major issue remaining involves a proposed 5% pay cut for teachers, which would amount to a $350,000 savings to the district, acting Supt. Jackson E. Parham said. Talks with the teachers union reached an impasse recently, and a mediator was summoned. Both sides will meet again on Friday.

On Tuesday, members of the classified workers union, which includes office clerks, custodians and secretaries, voted 29 to 16 to accept a 5% pay cut, Parham said.

The nonunion workers, including principals, assistant principals, the superintendent’s secretary and the food service manager, met last week and agreed to the 5% pay cuts. Also last week, Parham, an attorney, offered to relinquish 20% of his pay. As the district’s leader, Parham said he felt compelled to take the largest cut.

Also Tuesday night, the board voted unanimously to begin requesting proposals from search firms as a first step toward finding a permanent superintendent. Parham took the job on a month-to-month basis after it was rejected by all the district administrators.

“The district’s in need of permanent leadership, and we need to move on it,” Parham told the board.

Supt. Paul M. Possemato, who took an early retirement in August under pressure by parents, will remain on the payroll until Feb. 4.

The district’s crisis, brought on by flattened property taxes, the county’s bankruptcy and the Laguna Beach fire, has resulted in sweeping changes in the district’s leadership since last summer. All four top administrators have left, although two said they left for reasons other than the financial upheaval.

Two weeks ago, a three-member state budget review team visited the city to assess the financial picture and to recommend ways the district can right itself and avoid pitfalls in the future. The committee’s report is due this week.

Jerry Kurr, a member of the budget review team, said Tuesday that the proposed salary cuts were reasonable.

“It’s one of the few alternatives left to the district at this point in time that wouldn’t cause further ramifications on the district’s operations,” he said.