Cut, Slice, Trim: Budget in Progress

Officials are preparing for what could be Orange County’s worst budget situation since its 1994 bankruptcy, saying Tuesday that they will have to slash nearly $50 million in services for the poor, the elderly and troubled youths.

Among the agencies expected to be hardest hit is the probation department, which will be forced to eliminate 145 of its 804 beds for incarcerated juveniles and close two of its four community centers aimed at reducing juvenile crime, said Stephanie Lewis, chief probation officer.

The cutbacks are outlined in the county’s preliminary budget analysis, released Tuesday at a press briefing. The analysis has not yet gone to the Board of Supervisors.

Also expected to be hard hit is the Health Care Agency, which would have to reduce mental health services for indigents, alcohol and drug treatment programs and family clinics, said Stephen Dunivent, manager of the county’s budget office.

County officials say they will need to trim nearly $50 million from budget requests by more than two dozen agencies that provide services ranging from public safety to recreation. Budget officials say these agencies are tentatively proposing spending $546 million this year, down from $558 million budgeted for the year and significantly less than the $595 million they sought.

The amount is money raised and spent locally. The total budget, which includes money from Sacramento and Washington, will be around $5 billion.

“It’s not something we’re going to grow out of. It’s something we’re going to have to deal with by reducing services and cutting back needs and wants,” said Thomas Sacco, the county’s financial planning manager.

Budget officials have not yet completed the proposed budget, but they are identifying likely targets for spending cuts. Supervisors must adopt a budget by June 30. The cuts could increase once the state approves its final budget. If the state budget proposed in January were approved, the county would need to make an additional $62 million in cuts, said county Executive Officer James Ruth.

Part of the problem is the bankruptcy. Officials budget $90 million a year to make payments on the $850 million in debt remaining from the bankruptcy, triggered when the county investment pool collapsed. The debt will be paid off in 2026.