County Rejects Plea to Restore Funds to Head Start Provider

Los Angeles County officials Thursday rejected an appeal of their decision to cut back the funding of the community agency running Head Start programs in the San Fernando and Santa Clarita valleys.

Officials said, however, that the decision was based on a written appeal filed by the Latin American Civic Assn. before its executive director resigned and a new board of directors was formed to oversee the San Fernando-based organization this week.

Irene Tovar, LACA’s new board chairwoman, said the agency will appeal the county’s decision to the Office for the Administration of Children and Families in San Francisco, the regional office for the federal Department of Health and Human Services, which oversees the Head Start program.

“I think that we can demonstrate that we are now moving in the right direction,” Tovar said.

The regional office may consider new information provided by LACA--such as its reorganization and any budget proposals--and could order county officials to again reconsider its decision.

The county Office of Education in February stripped LACA of $5.3 million in future funding, saying it was riddled with financial problems and had violated federal regulations. County officials said that due to alleged mismanagement LACA would have an $822,000 deficit by the end of the fiscal year unless severe budget cuts were made.

Tuesday night, seven of 11 board members resigned and were immediately replaced with 10 new members, most of whom were original founders of LACA. Ralph Arriola, who had run LACA for more than 15 years, also resigned.

Mike Bower, spokesman for the Office of Education, said county officials are meeting with LACA board members, parents and union officials to work out a plan to make up the deficit. He said he expects a new proposal by Monday.

Bower said that while the appeal process is running its course--which could take nearly three months--the county is prepared to operate the program until a new agency is named to run the program permanently.

In addition to making up the projected budget deficit, LACA must repay about $100,000 in disallowed expenditures from the 1991-92 fiscal year. County investigators last summer found that LACA had violated federal regulations by renting office space and vans from its own employees, overpaying some staff members and engaging in nepotism.

LACA was created nearly 30 years ago to improve educational opportunities for Latinos in the San Fernando Valley. Head Start provides meals, instruction and health services to nearly 1,800 mostly poor children in the San Fernando and Santa Clarita valleys.