Daily News Clips
Office of the Chancellor / Public Affairs
Thursday, April 15, 2004
 

CONTRA COSTA TIMES/4-15-04

Vallejo schools seek $60 million

By Suzanne Pardington

 

In the second-largest school bailout in California history, the Vallejo school district has asked state lawmakers for a $60 million emergency loan to save it from a snowballing fiscal crisis.

The size of the loan was revealed for the first time in a bill filed Tuesday by state Sen. Wesley Chesbro, D-Arcata. Without the money, district officials say, Vallejo's schools won't be able to open in the fall. Even with it, more cuts are expected.

The Oakland school district, the recipient of the largest loan, has borrowed $65 million so far of the $100 million approved by state lawmakers last year.

A $60 million debt would hit Vallejo schools even harder than Oakland, because the 20,000-student district is less than half as big as Oakland's school system.

"It's a huge burden that you have to pay back," said Bill Pendergast, a Vallejo school trustee. "There will be no way to paint a happy face on this district. It's devastating to the district."

State lawmakers are likely to approve the loan, despite struggling with their own fiscal crisis, because the state is constitutionally required to keep the school doors open.

Sen. Chesbro's spokeswoman, Darby Kernan, said she expects state lawmakers to ask tough questions about why the district needs the loan, but they will ultimately approve it.

"Our number one obligation is to keep kids in schools getting an education," Kernan said.

If Gov. Arnold Schwarzenegger signs the bill, state Superintendent of Public Instruction Jack O'Connell would immediately take control of the district and appoint a state administrator, relegating the elected school board to an advisory role.

"Superintendent O'Connell and the Department of Education are very much in support of this legislation, because this is how we can protect the educational services for the students in the Vallejo school district," Hilary McLean, O'Connell's spokeswoman, said.

A February fiscal review revealed that the district's budget was full of errors. It took in about $132 million 2003-04. Overspending this year and last amounted to about $20 million.

The school board has asked the Solano County Grand Jury to investigate the crisis. Vallejo Superintendent Gladys Phillips-Evans was placed on paid administrative leave last month, and the district's top fiscal officer, Frank Remkiewicz, resigned in February.

The district's outside fiscal advisers figure it needs to borrow up to $60 million to cover this year's deficit and continuing shortfalls over the next two to three years.

But the loan will not save the district from deep cuts. Over the next few years, the district needs to slice a total of about $24 million, accounting for enrollment drops and increased costs, said Sarah Hart, assistant superintendent in the Solano County Office of Education.

The district has already trimmed about $7.5 million, against protests of parents, students and employees. The cuts include middle school counselors and librarians, social workers, elementary music teachers, about 60 teaching positions and five vice principals.

The bill allows the district to sell property to reduce or pay back its debt. Cliff Solari, deputy Vallejo superintendent, said developers are interested in buying some district property that could bring in about $20 million.

The first Senate hearing about the bill is set for April 21 in the education committee. The bill is expected to take about five weeks to move through the Legislature, and the governor will have 12 days to sign it.