Brea / Fullerton : County Bankruptcy Imperils Schools

Trustees of the Fullerton and Brea Olinda Unified school districts have reported that they may not be able to meet their financial obligations due to the uncertainty created by the county bankruptcy.

Fullerton’s district stands to lose $800,000 under a proposed county plan to repay county investment pool participants, including the two school districts. In addition, the district, which has a $45-million budget, faces a $500,000 shortfall in funds that are supposed to be on reserve.

Brea’s district stands to lose about $920,000 in the failed investment pool. In addition, its $22-million budget faces a shortfall of about $200,000 this year because of the county’s financial crisis. Officials there said they plan to balance the budget regardless.

Both districts are considering budget cuts and looking for ways to avoid having to fire employees.