Money Should Go Back to Schools

* I read with interest and some concern the quotes attributed to Orange County’s chief executive officer, Jan Mittermeier, in the July 19 article regarding distribution of money from the Merrill Lynch settlement.

Mittermeier was quoted as saying, “So far, [the attorneys] have not been able to find a legal basis to say that this money belongs to the pool participants.”

Additionally, the article implied that the county would be “giving” $30 million to school districts and quotes Mittermeier as saying, “There are many ways the county could use the $30 million to benefit all 2.8 million residents.”

In reality, the county would simply be returning $30 million already owed to school districts that the county had been entrusted with safeguarding.

School districts were the only public agencies required by state law to deposit their funds in the county treasury, and the former county treasurer and county officials were entrusted with safeguarding those funds.

In recognition of this unique obligation, all creditors agreed, after many months of negotiations, that school agencies should have the highest priority for settlement of the first $55 million of any proceeds that resulted from the bankruptcy.

Additionally, the comprehensive settlement agreement and plan of adjustment, after approval by all of the creditors, was approved by the court.

School agencies throughout Orange County are still trying to recover from the budget reductions forced by the bankruptcy.

I urge the Board of Supervisors to honor its commitment to Orange County’s school districts, schoolchildren, and pool participants and return the $30 million to school agencies.

Most importantly, I urge the board to show good faith to pool participants by implementing the agreed upon settlement plan.

JAMES FLEMING

Superintendent

Capistrano Unified School District