Wilson Asks Justices to Void School Bailout

SACRAMENTO — Gov. Pete Wilson on Monday asked the state Supreme Court to immediately suspend a lower court ruling that forced the state to provide a $19-million loan to the bankrupt Richmond Unified School District.

Wilson asked the high court to stay the Superior Court order because he believes the bailout requirement will encourage other school districts to spend beyond their means with the expectation that the state will step in and help if their fiscal picture deteriorates, a spokesman said.

The 31,300-student Richmond district, in the San Francisco Bay Area, was scheduled to close its doors last Wednesday, six weeks before the end of the school year, until Contra Costa County Superior Court Judge Ellen James ordered the district to remain open.

The state lent the district $9 million last year, but Wilson said no more extra money should go to the Richmond schools unless a trustee appointed to oversee the district is given the power to scrap the salary contract with the district’s teachers.

Criticizing Wilson’s legal maneuver, state Controller Gray Davis said that he and state schools Supt. Bill Honig had negotiated a loan agreement that is “reasonable and tough” and will result in the taxpayers being fully repaid.

“The parents and children of Richmond have gone through an emotional roller coaster,” Davis said in a statement. “Unfortunately, the governor’s action means their nightmare has not yet ended.”

Wilson’s press secretary, Bill Livingstone, said letting the ruling stand would “create another nightmare for all the people of California and all the other school districts in the state.”