District feels pinch

Lauren Vane

A state audit report released in June revealed that the Huntington

Beach City School District is Orange County’s only elementary school

district in financial distress.

The news, while grim, is nothing new for the city school district,

officials said.

“It’s not at all surprising to us,” school board President Cathy

McGough said.

The district rode a financial roller coaster this year, deciding

to close one elementary school when faced with declining enrollment

and budget cuts.

And the district is reporting a qualified certification -- meaning

it may not be able to meet financial obligations for the current year

and two subsequent years.

District officials have long blamed the governor’s budget

shortfalls and the absence of promised Proposition 98 funds.

Declining enrollment and the rising cost of special education,

unfunded by state and federal government, are also financial

stressors, McGough said.

“We’re required to do things that we’re not being able to fund,”

McGough said.

Since the school district first reported trouble in meeting

financial obligations, the county department of education has taken

an active role in steering the district toward an improved financial

state.

“You get the county real interested in what you’re doing ... it

was good for this district,” said chief business official Mike

Curran. “You have a lot more to answer for about what’s going on.”

Curran insists the district has already taken steps to right the

budget; deciding to close a school was one of them, Curran said.

“We’ll get off that list [of schools in financial trouble] -- I’m

confident we’ll get off that list,” Curran said.

The budget the district submitted for the 2005-06 school year

indicates a positive upturn, Curran said. The district is awaiting a

response from the county on whether the budget will receive a

positive certification.

“We’re very hopeful for a positive certification in the near

future,” McGough said.

State Controller Steve Westly’s audit report indicated that the

city school district is not alone in its budget woes. The audit

reports that the financial state of education in California has

changed for the worse; 12 districts spent more money than they

received, and the number of districts unable to meet their financial

obligations has increased.

Ocean View School District, Huntington Beach’s other elementary

school district, has escaped the financial troubles that have plagued

its neighboring district.

Chief Financial Officer Mary Lou Beckmann said no one move has put

Ocean View in good financial standing. Each school district is

different, she said.

“We just monitor things, keep a close eye on things,” Beckmann

said.

* LAUREN VANE covers education and crime. She can be reached at

(714) 966-4610 or lauren.vane@latimes.com.