Orange County schools would survive $490 million in mid-year cuts proposed by Gov. Arnold Schwarzenegger, but would be forced to continue slashing employees and programs as they brace for several more years of gloomy budgets, officials said Monday.

The governor’s office last week unveiled its latest plan to close a projected $41.6 billion, 18-month budget deficit, which included cutting $2.1 billion in immediate cuts from public schools and withholding $2.8 billion until July, when the next fiscal year begins.

In Orange County, the plan would require about $210 million in immediate cuts from K-12 schools, plus tapping into about $280 million of rainy-day reserve funds to weather the temporary drop in funding levels.

“We’re fighting for every dollar for kids this year, but we’re also realistic and know we can’t just not take cuts,” said county schools Superintendent Bill Habermehl. “In Orange County, we’re in a much better position than the rest of California because our school districts are well managed. It will hurt, but not as much.”

The governor’s office has released multiple budget proposals in the past few months, all calling for multi-billion cuts to public education. But the state Legislature thus far has failed to act on the widening budget gap, leaving school districts in limbo as they work to stay afloat financially.

“It’s really early to anticipate what or how we’re going to cut,” said Julie Hatchel, spokeswoman for the 52,000-student Capistrano Unified School District, which is preparing for $16 million to $17 million in mid-year cuts. “Our reserves are already extremely low. Depending on what they’re expecting us to cut or use from our reserves, it could be problematic. We’ve already made so many cuts to our programs.”

Last year, K-12 education funding was cut by about $3 billion from what schools had expected to receive under state funding formulas.

In response, school districts across Orange County slashed a combined $150 million, laying off scores of custodians, groundskeepers, office workers and administrators, plus forcing more than 100 teachers to find employment elsewhere.

“For the state to tell you that you have to maintain class sizes, buy new text books, and comply with everything else they demand and not give you the funding for it is just crazy,” said Audrey Yamagata-Noji, a trustee for the 54,500-student Santa Ana Unified School District, which is looking to cut upward of $46 million over the next two years.

Under the governor’s latest plan, the future isn’t bright for the next school year, either. K-12 schools in 2009-10 would receive $3.1 billion less than what they expected to get under state funding formulas. Part of the cost-savings would come from a proposal to cut the school year short by a week, shaving off $1.1 billion.

California schools Superintendent Jack O’Connell has blasted the governor’s plan for funding education, saying it would create “a cash flow crisis” for school districts and shortchange California’s future.

“This budget proposal would be devastating for not only public education, but to the state,” O’Connell said Friday. “This is less learning opportunities for students, longer bus rides, fewer materials. Many of us would like to see a longer school day now and this takes us in the opposite direction.”

Cutting the 2009-10 school year by five days would create a substantial and potentially difficult adjustment period, educators said, but they said that Orange County’s teachers would be able to rise to the challenge.

“Given enough time, our teachers are flexible enough to handle a change in schedule,” said Tom Turner, spokesman for the 34,000-student Saddleback Valley Unified School District, which is bracing for about $10 million in mid-year cuts. “Our teachers are professionals and they have their year set out – 180 days to get through textbooks, standardized testing, reviewing how to be a better teacher. Taking away the five days can change the way a teacher runs a program.”

Staff writer Fermin Leal contributed to this report.

Contact the writer: 949-454-7394 or smartindale@ocregister.com