School district seeks piece of state building-fund pie

Jessica Garrison

NEWPORT-MESA -- Nearly six months after state Sen. Ross Johnson

(R-Irvine) first submitted it, Senate Bill 1039, which would allow the

Newport-Mesa school district to apply for state funds to rebuild

crumbling school buildings, is sitting on Gov. Gray Davis’ desk.

The Senate and Assembly approved the bill Friday and the governor has

until Oct. 10 to sign it or veto it. But district officials hope he will

sign it much sooner.

“Wonderful. That is the best news we’ve heard,” said school board

President Serene Stokes. “It really is going to make a difference in what

we can do.”

The district never has been eligible for state funds because its

schools are too new and its communities too wealthy, but because the

$9.2-billion school bond approved by voters last year has more flexible

requirements, the district is finally eligible for a piece of the

building-fund pie.

The only problem is, right now the state won’t allow the district to

apply for the funds because of a deal worked out during the Orange County

bankruptcy.

During the bankruptcy, the district sold the Bear Street School and

put the $5 million in proceeds into its general fund. The state allowed

this usually forbidden practice because of the unusual circumstances

surrounding the bankruptcy, but told the district it could not receive

any state money for five years.

Enter Johnson’s bill, which will allow the district to apply now for

funds from the state bond.

The district badly needs those funds. Last June, Fred Good, a district

consultant, estimated that district schools need $127 million in repairs,

money the cash-strapped district does not have.

District officials and a committee of community leaders have

considered everything from selling district property to floating the

district’s first-ever school bond to pay for the repairs.

If the district is able to get state funds -- most of which must be

matched with local money -- it will make the huge job of paying for

school repairs much easier.

“I’m very excited,” said board member Jim Ferryman. “This is the next

step, and it’s very important. This could be the difference between

solving our problem and falling short.”

Closer to home, the district’s facilities committee, which has been

meeting since August to come up with a plan for paying for school

repairs, is almost ready to make a report to the board of education.

Committee members have visited elementary schools and are in the

process of visiting all the district’s secondary schools to determine

whether they agree that all the repairs recommended by the consultant are

necessary.

They have also met with financing experts to discuss various types of

voter-approved debt. Options include asking voters to approve a bond, a

parcel tax or the creation of a Mello Roos improvement district, a

special district which would have special taxes levied on it.

“This could be a real plus, because it’s a piece of the puzzle,” said

Supt. Robert Barbot. “We’re optimistic. I’m real cautious. People have

told me to relax, but I want it to be right.”