Members of L.A. Panels Come to Aid of Secession

The group that wants to lead the breakup of the Los Angeles Unified School District was rescued from going broke last year by big loans from two San Fernando Valley power brokers known for their close connection to Mayor Richard Riordan, records show.

City Fire Commissioner David Fleming made a $37,500 loan, and a company owned by Police Commissioner Bert Boeckmann lent $25,000 to Valley VOTE last year, helping the group that is pushing Valley political secession to overcome a $64,778 operating deficit, according to the group’s tax filing with the Internal Revenue Service.

The loans are in addition to $26,000 contributed by Fleming and $20,000 given by Boeckmann’s business, Galpin Motors Inc.

The loans have not been paid back. Valley VOTE board members say the group is no longer experiencing financial problems, even as it expands its scope to also look at breaking up the school district.

“We intend to pay them back, but there is no rush,” said Valley VOTE President Jeff Brain.

The tax form covers a year where the group was struggling to meet expenses and collect enough signatures to trigger a study of Valley cityhood, legally required before any vote may be scheduled. Fund-raising was more difficult before the petitions were collected and qualified earlier this year, said Bruce Bialosky, who was treasurer last year.

“Until we submitted the signatures and they were approved, there were certain people who believed in us, and others who didn’t want to take a risk,” Bialosky said.

The 1998 tax filing should not be taken as an indication of Valley VOTE’s current financial health, officials said. The group has raised more than $500,000 so far as it prepares to monitor the study of cityhood, and gets involved in seeking a breakup of the school district.

Fleming, a Studio City attorney, said he is not concerned that Valley VOTE has not repaid his loan, which was made at 5% interest.

“It [payback] is not that important to us at this stage,” Fleming said. “We’re not going to be destitute if we are not paid back right away.”

Last week, Valley VOTE attempted to position itself at the forefront of the LAUSD breakup movement, despite the fact that a school board majority backed by Riordan has begun exercising its power in dumping the superintendent.

“We just elected a new school board. We need to give them an opportunity to fix the system,” said mayoral spokeswoman Jessica Copen.

Fleming and Boeckmann are appointed by the mayor, who strongly opposes cityhood for the San Fernando Valley.

Still, Riordan continues to count Fleming and Boeckmann as allies in a broader sense.

“While the mayor doesn’t support secession and despite this difference of opinion, they continue to work hard together for the good of the city,” Copen said.

Brain, whom the tax filing indicates was paid $23,250 last year as Valley VOTE president, said Boeckmann and Fleming made the loans knowing they might not be paid back.

The IRS and a file with the state Office of Charitable Trusts do not disclose those who donated to the petition drive last year. The tax filing does provide a detailed breakdown of expenses, down to the $1,342 spent on T-shirts.

The vast majority of expenses, about $284,000, went to the petition drive, including $234,844 for circulation expenses and $11,000 for signature validation and verification.

Valley VOTE paid $7,380 in legal fees last year, $3,135 for education, $6,000 for advertising and $3,855 on travel.

Brain is the only officer to receive compensation, according to the tax filing, which was filed in May but was only recently listed on a Web site maintained by the state attorney general’s office.

The tax filing does not provide the detail required in campaign finance reports filed with the state by groups seeking to influence traditional initiative drives. Brain refused again on Wednesday to disclose all of the donors.

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SECESSION STUDY

Los Angeles leaders OK more than $200,000 for a report on Valley’s potential cityhood. B5