County’s Off to a Good Start on Road to Reform

As chairman of the Board of Supervisors and as someone who has seen the best and worst of times since my appointment by Gov. Pete Wilson in 1993, I would like to highlight our efforts to make county government more responsive and accountable since the bankruptcy.

I welcomed the critical examination of county operations during the bankruptcy and appreciated the hard work of those who volunteered their time and expertise on the Governmental Practices Oversight Committee (GPOC). Of their 98 findings and recommendations, the board, since June 1996, has implemented or plans to implement 59, with another 20 under consideration.

This effort hardly can be characterized as treating the GPOC recommendations with silence, as characterized by Mary Ann Schulte and Bill Mitchell in their critical Orange County Voices article, “County Moving Too Slowly on Needed Change” (Sept. 28). Their viewpoint does a disservice to the significant progress made in restructuring county government.

Moving from the crisis management to an approach that sets the pace for change is no small accomplishment. Orange County is America’s fifth-largest county and one of the nation’s strongest economic regions. But it also has complex problems and divisive issues.

A bureaucracy like the county, with its work force of some 16,000 and $3.8-billion budget, has a natural tendency to become entrenched over the years. Nevertheless the “silver lining” of the bankruptcy is that it forced change. As a result we have had some significant accomplishments that offer hope for a more cost-effective, responsive county government.

Of course, nothing constructive could have taken place if we had not emerged from bankruptcy. To have done so in only 18 months with no state or federal bailout, no default on debt, no trustee and no tax increase is testimony to the tenacity, sense of duty and cooperative spirit of everyone who was involved in the workout.

Consider as well the painful lessons of the bankruptcy that led to the creation of a chief financial officer position, strong investment guidelines, oversight committees, an Internal Audit Division directly accountable to the Board of Supervisors, more public scrutiny and deliberation and other systems of accountability. Now, rather than an embarrassment, Orange County is a model for other municipalities in terms of fiscal conservatism. Treasurer John M.W. Moorlach’s well-earned AAA rating of the investment pool by Fitch Investor Service is evidence that there is renewed confidence in the ability of Orange County to properly manage its fiscal affairs.

At the core of meaningful change has been a strong chief executive officer and a structure of decision-making that is more businesslike and less fragmented. Whether one agrees or disagrees with Jan Mittermeier, the reality is that she has replaced a previously dysfunctional structure in which five county supervisors could do their own thing.

Off-site strategic planning sessions have been held between board members, department heads and executive staff for the first time in the county’s history. The result has been to establish funding priorities in public safety, regional planning, general county operations and health and human services. Departments have been downsized or eliminated, the organizational hierarchy has been “flattened” to allow for better communications, and greater cost efficiencies have saved millions of taxpayer dollars.

As we have considered the long-range future of the county, we have been single-minded in our resolve for the early payoff of bankruptcy debt. We have set aside $50 million of a $140-million goal toward early bond defeasance. This will save us millions of dollars in interest costs. At the same time, we are equally committed to funding essential services for our constituencies. The pendulum is slowly swinging back to restore some of the services without jeopardizing our financial health or returning to business as usual.

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Finally, while some may feel we are moving too slowly for needed change, we need not apologize.

We know there is much more to do, but it is an evolving process. There is a long road ahead as we try to build trust and repair relationships with the cities, school districts and special districts that lost so much during the bankruptcy. Hopefully, proceeds from litigation will eventually make the victims of the bankruptcy whole.

While we may have differences, the reality is that Orange County, more than most governmental entities, has a “mind-set” that is nothing short of a culture change, a change that embraces continued self-evaluation. As I complete my term as chairman of the board, I am especially pleased that we have moved beyond the blame of the bankruptcy to strategies that will position county government for the challenges of the future.