CUSD Update, Dec. 15
Editorial staff

Topics of the week include the Capo district’s perpetual shortage of funds, the delay until February in the court case against former administrators James Fleming and Susan McGill, choosing a new school board president for 2008, and the continued debate over finishing the stadium and other projects at the new high school in San Juan Capistrano.

Some of the best suggestions about district finance have come from constituents. Reform-minded parents suggested selling the $52-million administration center even before it was finished. The building, which is so large that district operations can’t fill the space, is a huge liability, and interest payments continue consuming funds that should be spent on classrooms. Six months ago, the district spin machine promoted the idea that revenue from leasing out a portion of the building would be used to maintain and update older facilities, such as Newhart. Earlier this month, a district administrator announced that the rental funds could also be used for debt service on the Certificates of Participation. While the rental revenue could be spent in a variety of ways, the debt service cannot be postponed or pushed down the list.

The district’s plans to sell unused real estate took a turn with the failed sale of the Las Colinas property. Money from the sale could have been used to improve the district’s cash flow. With a potential $3 million expenditure for stadium seating at the new high school, plus the prospect of having to repay the state $8 million over portable classrooms that weren’t installed and the governor talking about a 10-percent cut (because of disastrous state revenue projections), the district is in trouble but still pretending it has money to spend on nonessentials. At least one trustee acknowledged during a board meeting that the district is on the verge of receivership.

Some parents object to selling any more real estate, particularly when funds from such sales are immediately spent. One parent said that the Taj Mahal administration center could be sold, but the district would still owe money on a building it no longer owned.

In the news last week, the court date for former CUSD administrators James Fleming and Susan McGill (both charged with felonies) was delayed until February. McGill’s attorney asked prosecutors to point out specific references in thousands of pages of grand jury testimony that demonstrate McGill perjured herself. The judge said it will take time to read the material and make a decision on the request. Meanwhile, reform-minded parents hope Fleming will feel like plea-bargaining with the D.A., revealing deals with developers, contractors and others who may have illegally benefited.

At the board meeting on Dec. 10, the trustees chose a Fleming holdover, Mike Darnold, as board president for 2008 with a 4-3 vote. Parents reacted by saying it couldn’t get much worse than the current president, Sheila Benecke. Darnold usually says nothing during discussion of agenda items, and it will be interesting to see how he’ll moderate the meetings. Trustee Duane Stiff (another Fleming holdover) was named vice president. Darnold’s term as a board member ends in November 2008, and he’s said he hasn’t decided whether or not to run for reelection.

During the meeting, the board voted to send San Juan Hills High School projects out to bid after tabling the item with a 4-3 vote at the previous meeting. Stiff switched sides (again) by voting with the old guard 4-3 on Dec. 10 in what appeared to be a move forward with spending $3 million on the new school. Stiff explained (no, no, no, I’m not voting to spend) that the board is just getting bids. The board added that the decision to approve spending would be made after an assessment of other facility needs.

Also on the agenda was a seemingly innocuous resolution to shift millions of dollars from school supplies and financial reserves to salaries and employee benefits for non-teachers. Parents said it underlines the district’s precarious financial situation.