Court case could mean more local school cuts
Christine Carrillo
It’s just too big to fathom.
It’s impossible to prepare for.
It’s yet another threat to the already strained pocketbooks of the
Newport-Mesa Unified School District and the Coast Community College
District.
A pending court case against Orange County, charging that its
practice of property value assessment has been inconsistent with
Proposition 13, could cost Newport-Mesa about $16.7 million and the
college district about $8.7 million
Right now, those numbers are too much to digest, officials said.
“It will have implications for the entire state of California,”
said Paul Reed, assistant superintendent for business services at
Newport-Mesa Unified. “It’s not something that any individual entity
can fix. There’s nothing you can do. You don’t prepare for it by
hiding under the desk.”
While now in the appeals process, the case, which originated in
Seal Beach, seeks payback from the county for the readjustments in
property tax assessments by 5% or 10% in a single year rather than
the 2% limit established by the proposition. A Superior Court has
ruled in favor of the Seal Beach plaintiff.
“This case is huge and a lot more than we can handle,” said C.M.
Brahmbhatt, vice chancellor for fiscal affairs at college district.
In addition to the initial refunds required from each district,
taxpayers would see annual reductions of $6.6 million for
Newport-Mesa and $3.4 million for Coast.
Since the effect the court decision could have on each district is
nearly impossible to assess at this time, college and Newport-Mesa
school officials, already grappling with the effects of a state
budget crisis, have left their fate in the hands of the state.
“We don’t know exactly how the state is going to react,”
Brahmbhatt said. “In a K through 12 [school system], there is a state
provision ... that if there are any property tax losses, that [the
state] will provide more support for those schools. For the community
colleges, that is not the case.”
An appeal of the case could take years, officials said. With the
involvement of the state inevitable, district officials agree that
there’s nothing to do now but wait.
In Newport Beach, the ruling could mean the city would have pay
back $5.7 million in property taxes and would collect $2.3 million
less each year.
* CHRISTINE CARRILLO covers education and may be reached at (949)
574-4268 or by e-mail at christine.carrillo@latimes.com.
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