LOS ALAMITOS : School Board Blames County for Fund Crisis

The Orange County Board of Supervisors must take sole responsibility for the county’s bankruptcy to minimize the chaos and reduce the cost of managing the financial crisis, trustees of the Los Alamitos Unified School District said in a resolution passed this week.

“Failure of the county to step forward and accept this responsibility will exacerbate its own crisis, spread the crisis (to) other agencies and result in wasteful and protracted litigation,” the resolution said.

The school district is demanding full return of its $12-million investment in the troubled county fund, a strategy that has been adopted by the 186 other agencies with investments in the pool.

Irvine City Manager Paul O. Brady Jr., who represents cities, schools and special districts on the creditors committee, said that a request for a 100% return of the money creditors had invested in the pool is the key element of a proposal that will be submitted to the county in the next few days.

Trustees said Monday that they will oppose any plan that does not call for a 100% return of the school district’s investments, including interest earnings.