Necessities Bring Some Inventive Ideas : * Today’s Government Budget Woes Foster Changes That Will Pay Off Tomorrow Too

It’s a little like the well-known picture of the big fish: As its jaws open to clamp down on a smaller fish, the smaller one opens wide to devour the next smallest, which has designs on an even smaller fish, and so on.

With the current recession, every level of government is scrambling to find ways to increase revenue and cut spending--sometimes by taking a chunk out of the next guy down the line. The state of California (with a $14.3-billion deficit), Orange County (a $65.3-million shortfall) and many of the county’s cities (topped by Anaheim, which has a $10-million deficit)--all are eyeing one another for ways to balance their budgets. But in some cases, budgetary woes have fostered a welcome move toward government creativity.

For example, there’s been a major shift from the state to counties of the responsibility for delivering public health and mental health programs. If it works as intended, the realignment should give counties local control while assuring a stable funding source.

In addition, Orange County is considering private contracting for certain government services, which offers the potential for major savings down the road. And in some cases, budgetary problems are forcing long-overdue reviews of policies. For example, the county’s imposition of jail booking fees on cities is fostering a review of municipal arrest policies that could eventually result in alleviating overcrowding in county jails.

Among the items that will cost more throughout California because of the 1991-92 state budget are vehicle license fees and sales taxes on all items except food and certain other necessities. (In Orange County, the general sales tax rate will increase 1 1/4%, to 7 3/4%.) Also, newspapers, candy and snacks will no longer be excluded from sales taxes.

Meanwhile, many Orange County cities are instituting cost-saving measures, from reducing staffs to deferring street maintenance. Residents or businesses will pay more for, among other items, trash pickup in Brea and La Habra; developer fees in Orange and Santa Ana; public utilities in Anaheim, Los Alamitos and Santa Ana, and fire inspection in Fountain Valley. It will even cost more--$125, up from $75--to rent a Laguna Beach park for a wedding.

Unfortunately, most of the ideas for balancing budgets--whether at the federal, state or local level--spell bad news for the taxpayers of today. But if the recession has a positive legacy, it will be that a few cost-saving measures were put in place. That should serve government well.