SCHOOL BOARD WRAP-UP: Board curtails spending in wake of uncertainty

The Laguna Beach Unified School District Board of Education is watching its pennies. The board decided Tuesday to take a cautious approach to spending, despite recording a 6% increase in revenues.

While the district has hired some two dozen new faculty and staff to accommodate an unexpected increase in student enrollment, there will be no more new additions to the employment rolls.

Supt. Robert Fraisse warned the board that the state budget “” approved last month after an unprecedented delay by legislators “” is already “unraveling,” and the gap between income and spending will probably require modifications.

Although Laguna Beach schools do not rely directly on the state for funding “” obtaining resources from local property taxes “” district officials are wary of possible changes in how the district is funded that could be prompted by the ongoing state fiscal crisis.

Adding to the uncertainty is the possibility, noted by board members, that homeowners will seek reassessments due to the overall economic downturn and that property taxes could plummet.

“It is likely the legislators will go back and the budget will change, and there will be mid-year cuts,” Fraisse said. Those cuts could come in January, only months away. Because districts cannot immediately lay off employees, they will have to use reserves in the event of a shortfall, he said.

“We can’t hire new people,” Fraisse said. After its initial hiring binge, the district had hoped to hire a second elementary school counselor and another staff member at Thurston Middle School.

The board agreed with Fraisse’s recommendation not to add to the district’s ongoing expense, but to spend $337,000 on one-time facilities projects, including:

?Air conditioning in four classrooms at Laguna Beach High School;

?Fixing water issues at the high school’s weight room;

?Replacing a walkway in the high school’s science wing;

?Installing a sound system in the high school gym, considered a safety issue;

?Installing a sound system in the high school stadium;

?Building a shade structure at the municipal pool;

?Improvements at Thurston Middle School, including an exterior loudspeaker, climate control and other repairs; and

?New furnishings at El Morro and Top of the World Elementary Schools.

? El Morro classrooms proceed

In other business, the board approved a contract to build new classrooms at El Morro Elementary School, despite some misgivings over the low bid.

General Consolidated Constructors bid $624,220 for the project, far lower than the $1 million the district had estimated for the project. Other bids ranged from a high of $919,000 to $760,000, the second-lowest bid.

Norma Shelton, assistant superintendent for business services, said the district is required to accept the lowest bid unless there is a legal reason for disqualifying the entity.

“This bid is much lower than the others, and that concerns me,” said Board Member Theresa O’Hare.

Shelton said the company’s references were thoroughly checked and it appeared the company had a good track record.

“Some companies will bid low in order to keep their people working,” Fraisse noted. The struggling economy in this case has benefited the district, he said.