Rally Round the Counties : Resisting a Sacramento money drain-off

The deep cuts proposed in Gov. Pete Wilson’s new state budget surely would hurt Los Angeles and Orange counties. That’s because both the Republican governor and some legislative Democrats want to balance Sacramento’s budget by taking state funds from the counties. The outlook is especially grim for large counties. There must be a better way.

THE CUTS: Although L.A. County has only about a third of the state’s population, it would endure more than half of the total cuts in statewide county funding that Wilson is proposing, according to Chief Administrative Officer Sally R. Reed. Altogether, L.A. County would lose $362 million in health care funds and property taxes.

Under the proposed diversion of property taxes, Los Angeles and 11 other counties would lose $500 million; Los Angeles would be hit with a reduction of more than $100 million.

A Senate-Assembly conference committee is offering an alternative budget plan, but it does not offer much relief for the counties. In fact, the alternative plan adds a new headache for counties--a proposed cut of $32 million in annual subsidies to county probation camps. The result would be a Los Angeles cutback of as much as $19 million.

Until his latest budget revisions, Wilson largely had spared counties of any further cuts in state funds. This new round of proposed reductions in state funding could not come at a worst time. Los Angeles County--already reeling from budget problems caused in part by previous state cutbacks--has yet to agree on a new county budget. The proposed state cuts make this task a torture.

Orange County, too, would suffer from the Democratic proposal to end the annual subsidies to the county probation camps. But Orange County’s loss of funds due to the shift of local property tax revenues would, it is hoped, be partially offset by projected increases in interest earnings on county investments.

THE COUNTERATTACK: Assemblyman Richard Katz (D-Sylmar) has scheduled an emergency meeting Monday in Sacramento with Los Angeles County representatives, legislators, the Department of Finance and others to review the magnitude of the proposed reductions in state funding to counties. The participants will try to identify alternatives to the proposed county budget cuts or find ways to raise revenue to avoid the reductions.

The emergency meeting should put all plausible options on the table. There’s been some talk in Sacramento of even a temporary salary cut for all public employees, legislators included.

Los Angeles County is still grappling with the aftereffects of the defense downsizing, recession and the Northridge earthquake. With the recent defeat of state bonds to finance earthquake repair, residential rebuilding efforts have already suffered one major setback. Trying to balance Sacramento’s budget on the backs of counties exacts an unfair toll on Los Angeles and California’s other densely populated areas, and that cannot be good for the future economic life of this state. All Assembly and state Senate members who care about their communities must rally around the counties.