DISTRICT MAY BE IN THE HOLE STATE MIGHT YANK FUNDING.

Byline: Naush Boghossian Staff Writer

SANTA CLARITA - The Hart school district stands to lose $47 million in ``hardship funding'' from the state - money approved before local voters OK'd a school construction bond measure - which could compromise modernization projects slated for district campuses.

According to William S. Hart Union High School District officials, the state seems to be waffling in its decision after Measure V passed.

``We're working with the assumption that the state won't withdraw all or part of the $47 million,'' said Rory Livingston, the district's director of business and fiscal services, about planning for renovating district campuses.

``The concern is that the state is going back and reviewing all projects in the unfunded pipeline and attempting to make value judgments not to fund them,'' he said.

Before voters passed Measure V in November 2001, a $158 million construction bond issue to fund the Hart district's 10-year facilities plan, the district was unable to pass two separate bond measures. With its overcrowding, the state approved the district for hardship funding.

Despite the approval for funding, the state recently sent the district a letter asking it to justify its eligibility for hardship funding.

Livingston said the questioning from the state has him worried about whether the district will see the $47 million.

``Yes, we passed a bond issue, but that doesn't go to meet all our needs,'' Livingston said. ``Should the state withdraw, then we have a $47 million hole to cover.''

The tenuous nature of the hardship funding has district officials concerned, especially since some see the state's November bond measure to be in jeopardy.

The bond measure worth more than $13 billion is expected to be on the ballot in the Nov. 5 general election, and another for $12.3 billion will be up for approval in the March 2004 election.

If passed, the state bond issue will give the Hart district about $127 million in new construction funding and hardship funds to be used for approved construction and renovation backlog projects.

If the state honors its pledge to fund already approved projects and provide hardship funds first, construction of Golden Valley and West Ranch high schools and Rancho Pico Junior High School would be completed with state funds.

The state owes the district more than $25 million in hardship funds for the Golden Valley project, $2.6 million for the construction of Rancho Pico and more than $8.3 million to build West Ranch High in the Stevenson Ranch area.

Measure V funds could then be devoted to modernization projects at existing schools and long-term planning for future new construction.

Without the state bond funds, the Hart district would have to rely on borrowed money or Measure V bonds for immediate construction, which will be reimbursed by state funds when they become available.

For now, the construction management firm hired by the district to develop a study - one that details the facility needs of the district's 11 campuses, the cost of improvements and building facilities - has to consider all funding scenarios in the event the state bond measure does not pass next month.