IRVINE : City Pledges to Rescue Cash-Strapped Schools

City officials have pledged to rescue cash-strapped Irvine Unified School District from the jaws of bankruptcy if county investment pool funds are not released in time for a $54.5-million bond payment due June 13.

“If there’s some way that we might possibly consider assisting the Irvine Unified School District--I think that makes a lot of sense,” said City Manager Paul O. Brady Jr., adding that he will ask council members to review financing proposals to keep the 21,700-student school district afloat.

The school board has targeted $3 million in cuts from next school year’s $100-million budget, and notices of potential layoff were sent this week to 30 administrators and 120 temporary teachers.

But school district bankruptcy attorney Marc Winthrop warned that Irvine Unified may be forced to file for bankruptcy protection if investment pool funds are not distributed soon.

Deputy Supt. Paul Reed said he has not talked with city officials about the possibility of financial aid.

“We’re very appreciative of anybody who wants to help, and we’ll certainly sit down and talk to them,” Reed said. “But at this point, we’re not certain what it all really means.”

The $54.5-million debt was incurred last summer when the school board voted to borrow the funds to make an extra investment in the county pool. The district had $107 million on deposit with the county when it declared bankruptcy Dec. 6, more than any other county public school district.

The City Council agreed this week to consider joining with the school district to create a fee-based athletics program that could save the district more than $1 million a year. And the school board is considering putting a parcel tax on the ballot to help support school programs.