Will the Huntington Beach City School District close one of its seven elementary schools? Will it kick out the 750 students who transferred from other districts? Will it lay off dozens of teachers?

Around 400 people packed into the boardroom Tuesday, Jan. 14, to voice those questions.

The short answer: It’s complicated.

When the district released its budget last month for the 2020/2021 school year, it listed possible cuts that would mitigate the projected $6.8 million deficit. On the still-hypothetical chopping block is an unspecified school – sending parents into a panic.

“Rumors are going around the community that the school has already been chosen,” said board member Diana Marks, denying trustees have made that decision.

At issue is whether HBCSD will be designated this year by California as a “community-funded” district – a prospect that first reared its head in 2013.

On a sliding scale, the state provides the vast majority of school districts at least some funding. Schools with high numbers of low-income students and English learners get the lion’s share, while affluent HBCSD rates among the 10 lowest-funded districts in California.

If a district receives enough money from property taxes to cover its own expenses, the state steps out. In return for financial independence, those districts can keep surplus tax income rather than pool it with money shared by all California schools.

Only two districts in Orange County are self-sufficient: Laguna Beach and Newport-Mesa Unified. HBCSD likely will join them in the near future. Home values and property taxes in the district are rising every year, and baby boomers are selling houses that enjoy pre-Proposition 13 taxes.

Beyond prestige, the “community-funded” designation comes with big advantages – giving districts more control over “nonessential” programs such as for sports and arts.

But with per-student funding out of the picture, the classification also makes children transferring from other districts unnecessary to HBCSD’s coffers. In fact, with property tax intake divvied among a student population smaller than its current 6,600, the district could qualify as community-funded all the quicker.

“You’re not interested in the kids unless they are making you money!” a man shouted from the audience at board members Tuesday night.

HBCSD hired consultant Greg Magnuson, a former superintendent for the Buena Park School District, to help hammer out a “stability plan.”

Magnuson told the trustees that without drastic cuts the district risks losing its “positive” financial standing – which means it can cover its expenses for three years. Districts showing they can only cover one year at most are taken over by the state, which decides where to trim.

The budget crisis is due to declining enrollment, Magnuson said. Annually, the district loses about 200 students who live in it.

“Huntington Beach is an aging community,” he said. “It’s not alone. More people are moving inland because the coast is so expensive.”

The district submitted a budget that included an unnamed school’s closure to prove it could be financially viable for three years, Magnuson said. However, board members assured, that is just an option and not a done deal.

“Ideally, we won’t have to pull the Band-aid off all at once,” said trustee Paul Morrow.

Those assertions did not quell the fears of some parents and staff at Peterson Elementary, which, unlike other facilities, has not been renovated lately.

Susan Flory, a Peterson teacher, broke into tears at the podium. “Tonight gives me true insight into what you’ve been talking about behind closed doors,” she said.

Most of the out-of-district transfers come from the Fountain Valley, Newport-Mesa and Huntington Beach-based Ocean View school districts. Yanking them would cause ripple effects – starting, as soon as next year, with the eventuality of shuttering a school. Two dozen or more teachers would be laid off at schools throughout the district.

Losing a facility would lead to new school boundaries, with kids assigned to schools they don’t currently attend.

And other districts suddenly would get an onslaught of new students.

“We’re at maximum capacity, so our classes could get huge,” said Jessica Reed, whose children attend Oka Elementary – based in Huntington Beach but part of the Fountain Valley district.

Parents of out-of-district transfers complained of “deceptive advertising.”

“You have been actively recruiting students to your district,” a parent chided the school board. “Your web page said, ‘Do you want to send your child to an elite school? Enroll today.’”

Another transfer parent said, “You are teaching our kids that they are expendable. First, it was: ‘Parents, bring your kids here.’ Now you want to shut the door in their faces.”

Parents could hear more definitive answers at the school board meeting Jan. 28.