Budget Picture Brightest Since Bankruptcy

SANTA ANA —  Orange County officials released a proposed budget Tuesday that for the first time since the 1994 bankruptcy calls for no cuts and begins to rebuild law enforcement and community services neglected during the last two years.

The biggest beneficiaries of the improved county financial situation are the public protection agencies, including the Sheriff’s Department, Probation Department, marshal’s office, courts and the public defender’s and district attorney’s offices. Those agencies would gain a total of 272 positions and an increase in their budget from $550 million to $632 million.

The additional funding is expected to improve family support collections, increase supervision of probationers, and provide for dredging bays and estuaries and starting work on building and maintenance projects delayed by the bankruptcy.

The brighter budget outlook should also result in increased hours and acquisitions at the county’s struggling library system, improvements to the county’s computers and a greater focus on development of an emergency communications network that will eventually link all Orange County police, fire and public works agencies in one system.

“Since the bankruptcy, a lot of projects have been deferred, and they can’t be deferred any longer,” said Stephen Dunivent, the county’s budget manager. “For the last few years, we haven’t had the money to do these things. Now we have that opportunity.”

The county’s improving fortunes are being fueled by greater tax and fee collections, which are expected to jump from $310 million this year to $343 million next year. Officials credit the upswing to the region’s booming economy, which should result in higher revenue from property taxes and motor vehicle licensing fees.

The proposed 1997-98 budget of $3.66 billion is 2% less than this year’s $3.74-billion spending plan. The decrease resulted from a recent county reorganization that eliminated more than 200 jobs, and from fewer people receiving Aid to Families with Dependent Children.

Another factor was a decrease in costs of debt service as the county begins paying off creditors who filed claims in the wake of the bankruptcy. But debt service costs are expected to rise in coming years as the county pays back the $800 million it borrowed last year to emerge from bankruptcy.

The proposed budget also sets aside an additional $24 million for early repayment of the debt, bringing the size of the early-payback fund to $50 million. The county’s reserve fund would rise to $15 million from $3 million, which officials said was far too low.

The plan sets aside $7 million that the Board of Supervisors could use to reduce overcrowding at county jails, Juvenile Hall and the Orangewood Children’s Home, an emergency shelter for abused and neglected children. The money could also be used to address extra costs resulting from welfare reform.

Many of the new positions in the district attorney’s office will be used to improve collection of child support by hiring more attorneys, investigators and other workers.

The office also plans to add 17 new staffers to its gang prosecution programs and two new positions to the statutory rape program.

The Probation Department, which saw its budget slashed 11% during the bankruptcy, plans to add 19 workers to more closely supervise adult and juvenile probationers. During the last three years, the caseload of the average probation officer has increased 15%. The department has nine fewer officers than it had in 1994, even though the number of cases has risen by about 20%.

The Sheriff’s Department would see its budget increase from $204 million to $214 million and would add 61 positions. Budget officials Tuesday said they could not say what new jobs would be created.

But they said some of the increase will come from transferring responsibility for the emergency communication system to the Sheriff’s Department from the General Services Agency. Spending for the system--which officials said is needed to replace the antiquated network--would jump from $29 million to $39 million.

The budget for the county’s trial courts would increase from $129 million to as much as $140 million under the spending plan. But that is still less than the $145 million that judges say they need. The judges and the county are battling each other in court to determine exactly what the courts’ needs are.

The 28-branch public library system would see its budget increase for the first time in five years. The 15% increase comes from a one-time allocation the board has already approved.

County Librarian John M. Adams said the boost will probably result in additional branch operating hours, which were cut severely over the last few years. Acquisitions of books and other materials--slashed by 50% since 1993--should also rise.

The county plans to increase spending from $1.8 million to $2 million for dredging Newport Bay, which is needed to keep the ecosystem healthy.

Several capital improvement projects would finally move forward if the spending plan is approved, including a $732,000 expansion of the overcrowded jury assembly room at the Central Courthouse in Santa Ana.

Another $1 million would go to refurbish the former General Services Agency building in Santa Ana for use by the public defender’s office, while about $450,000 would go for improvements to Juvenile Hall.

The budget also increases the internal auditing staff from 17 to 21. The extra staffing will allow the county to perform more frequent audits and management reviews, which supervisors have said is a top priority. Extra money would also be allocated for more thorough audits of the courts.

The county will hold two budget workshops for the public on Monday. The first begins at 10 a.m. at the Hall of Administration, 10 Civic Center Plaza in Santa Ana. The second starts at 6 p.m. at the county library headquarters, 1501 E. St. Andrews St. in Santa Ana.

On Tuesday, the Board of Supervisors will hold a budget study session. The board is scheduled to vote on the preliminary budget on June 24 and certify the final budget in September.

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Job Growth

The number of county positions would increase by 1.7% under the new budget, but not all areas will grow. Here’s who gains, who shrinks and the percentage change:

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Area 1996-97 1997-98 Change Public protection 6,807 7,314 7.4 Health services 2,196 2,242 2.1 Community/social services 3,178 3,196 1.0 Environmental management 1,505 1,551 3.1 General government/services 1,991 1,623 -18.5 Insurance/reserves 141 157 11.3 TOTAL 15,818 16,083 1.7

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Source: County of Orange budget office; Researched by SHELBY GRAD / Los Angeles Times