Laguna Beach's lucky schools escape state's funding crunch

But not in Laguna Beach.

That's because the four schools in the 2,900-student district are funded primarily by property taxes collected from the affluent community, essentially insulating it from the state's economic emergency.

As nearby Capistrano Unified School District faces crowded classrooms, canceled school bus routes and pink slips for teachers, their neighbors up the coast are hanging on to music and art programs, and considering expanding Spanish instruction for elementary school children.

Laguna Beach High School Principal Don Austin calls the mood "cautiously optimistic."

"Our staff is appreciative of our current situation, but . . . this is definitely not a time when we're celebrating," Austin said. Many Laguna Beach employees have friends and neighbors working in hard-hit schools nearby, or children attending those schools, he said. "Everyone understands the severity of the state's financial situation."

While Capistrano Unified has about $7,900 for each student, Laguna Beach Unified has nearly twice as much available per pupil: $13,367, the highest in Orange County. The other so-called basic aid district in the county, Newport-Mesa Unified, has about $10,600 for each student.

"It's irritating to people," said Jon Sonstelie, an economics professor at UC Santa Barbara who researched school finance for the Public Policy Institute of California. "People think it's unfair."

Laguna Beach Unified and Newport-Mesa are two of 87 basic aid districts in the state, out of more than 1,000 districts in California. Districts become basic aid districts automatically under a formula based on their revenue; the status can fluctuate from year to year depending on property values. "Revenue limit" schools, conversely, receive state aid in addition to local property taxes.

The complicated formula, calculated in part from average daily attendance figures, determines how much money each school receives in combined state and local taxes. In most districts, property taxes fall short of the mark, so the state provides the remainder. But in districts where property taxes exceed this amount, no additional money comes from the state for general purpose use.