Lawsuit provides district windfall

Danette Goulet

NEWPORT-MESA -- The result of a 20-year lawsuit with the state will

mean millions of dollars for the Newport-Mesa Unified School District.

The dispute between the state and 10 school districts, including

Newport-Mesa, was finally resolved Thursday when the state agreed to

increase funding for special education and pay back money owed the

districts.

Under the agreement, the state will pay a total of $520 million in

retroactive funding and guarantee an increase in future special education

money of $100 million annually, beginning with the next school year.

Of the retroactive costs, $270 million will be paid to districts in

one lump sum.

That means each school district in the state will receive about $45

per student, based on last year’s average daily attendance, said Bob

Blattner, the director of legislative services for School Services of

California, the lobbying and advocacy firm that has been handling

negotiations for schools.

For Newport-Mesa, that works out to about $800,000 by the end of this

school year, said Mike Fine, assistant superintendent of business

services.

The remaining $260 million in retroactive funds will be paid in 10

annual payments of $25 million beginning in 2001. That works out to about

$4.50 per student, Blattner said.

As for the future funding, the agreement calls for $100 million in

ongoing funds, a 3.5% increase in the per-pupil amount provided for

special education purposes.

“This second piece is about $17.50 per kid,” Blattner said.

While districts will be able to spend the $520 million in retroactive

funds in any way they choose, the future funding is restricted and must

go to special education.

These funds can be used for specialized books, materials and

equipment; to reduce special education class sizes; to pay salaries for

instructional aides for pupils with exceptional needs; or any other needs

identified for special education students.

The dispute dates back to 1980, when schools in Long Beach and

Riverside filed claims for the costs of eight special education programs,

claiming they resulted from a state mandate that had not been adequately

funded.

The schools had sought up to $2 billion in past reimbursements and

$160 million annually in the future.

The state refused the claims, insisting that the programs had received

adequate funding.

Although every school district in the state will benefit from the

agreement, Newport-Mesa was one of several districts to jump on board and

take a stand years ago.

“We looked at what [the complainants] were trying to do and said we

think there’s a very good chance of success,” said Supt. Robert Barbot.

“We thought we should be a party to it and join it, and we did.”

For the deal to be completed, Blattner said, there must be support

from the vast majority of school districts.

“Virtually everyone got involved,” he said. “The one thing that’s

interesting, though, is this deal is only going to hold if at least 85%

of state school districts, representing 92% of the kids, sign off on it.”

School districts throughout California have about one month to agree

to the plan, or it’s back to the drawing board.

The only other option is for each district to go back and rework its

taxes for the last 20 years, Blattner said.

The agreement pays back an estimated 50 cents for each dollar owed.

“This is what we truly call a win-win situation,” he said.