State, Federal Budget Strings Bind Hands of County Supervisors : Finances: Board members control only about 13% of their $3.7-billion budget, leaving little leeway when trying to avoid cutting jobs and programs.

When the Orange County Board of Supervisors drops the gavel on its 1991-92 budget next week, it is expected to eliminate hundreds of county jobs, trim dozens of programs and cut some of the services that local residents value most.

The need for cuts is especially frustrating, supervisors say, because they control only about 13% of a budget which totals $3.7 billion.

Welfare, indigent medical care, some drug-enforcement operations and the massive Santa Ana River flood control project are just a few of the areas that nominally come under county government, but over which the board has little say.

In other areas--park acquisition, for instance--officials say the board can exercise more control over the money, but members complain that they cannot use it for other purposes, even if they seem more important.

“It’s an overwhelming frustration,” Board of Supervisors Chairman Gaddi H. Vasquez said. “We have very little control. We have very little opportunity to be creative.”

County government has increasingly become an entity that merely passes on money for programs defined by state and federal government.

In addition to diminishing local control over how that money is spent, such programs often require that the county pay for a portion of the costs of administering them. Those so-called matching funds must be paid by the county, meaning that there is less to spend on programs that local residents want or need: sheriff’s deputies, for instance, or prosecutors or social programs to deal with the county’s increasing complexity and diversity.

“I had more discretion over my budget when I was the mayor of Anaheim than I do now,” Supervisor Don R. Roth said in a recent interview. “When people tell me I should take some of the money out of Harbors, Beaches and Parks and put it in health care, they just don’t realize that I can’t.”

Even the bulk of the county’s so-called “general fund”--the pool of money at the supervisors’ disposal--is tied up in mandated programs. About a third of that money can be spent at the discretion of the Board of Supervisors, while the rest goes to programs dictated either by Sacramento or Washington.

There have been some signs that the state recognizes that problem and is beginning to loosen the reins. A recent shift in medical programs, for instance, transferred administration of indigent medical care to the counties, forcing local officials to take responsibility for that expensive program but also giving them more flexibility in administering it.

But in other areas, such as welfare, the rules are different.

All welfare programs are controlled by either state or federal government, which pay the benefits to aid recipients. But the county, which has no control over the size of the program or who is eligible, must pay a share of the cost of administering the programs.

At a time when recession is swelling the unemployment rolls--and Orange County’s population of poor people is growing--even the county government’s relatively small share of running welfare can add up. A recent study of the county social service caseloads found that the number of recipients of Aid to Families with Dependent Children jumped by 32% last year, while the number of people receiving general welfare relief increased 28%.

This year alone, those increases--along with those in other welfare programs--will cost the county an additional $4.3 million, according to budget documents prepared by County Administrative Officer Ernie Schneider.

That is enough money to have allowed supervisors to save the popular but now endangered Commission on the Status of Women, the agricultural extension service at UCI, and a volunteer program that distributes Christmas gifts to needy youngsters. In fact, the board could have restored those programs, which are slated for elimination under the budget to be considered Tuesday, and still have had millions left over to save scores of county jobs.

“It seems like every year the mandates are increased and the funds are decreased,” said Supervisor Harriett M. Wieder, who has served on the board for more than a decade. “As our budget gets tighter, that makes it more difficult to deal with.”

The mandates, officials say, also create jarring management problems. This year, Orange County will increase the number of government workers from 16,420 to 17,149--at the same time that it lays off its first employees in more than a decade.

That’s because the county is forced to add workers in social services and health care to keep up with growing state and federal mandates. Then, the local government ends up having to lay off workers in areas that are not mandated so that it can pay for those functions that are.

When the board votes Tuesday on its budget, it will reluctantly do just that. The proposed budget eliminates 260 positions--a figure that was increased by 20 in the last few days as officials scrambled to make ends meet. Though most are vacant, 85 are filled, and some of those workers could soon be looking for jobs at the same time that the government is forced to grow.

It’s a situation rich in bitter irony for many of the affected workers and the county supervisors.

“It’s a terrible thing,” said Supervisor Thomas F. Riley. “In the past, this wasn’t really a problem, but now the damn mandated programs that we get from the state and federal government really tie our hands.”

Money Already Spent The Board of Supervisors oversees a $3.67-billion budget but actually has discretion over the spending of only about 13% of that amount. State and federal mandates dictate how much of the rest will be spent, frustrating the county supervisors and contributing to deficits that will force layoffs this year and possibly in years to come. 1991-92 County Budget: Discretionary General Fund: $482.6 million Only this money can be spent however the board sees fit. Other General Fund: $814.5 million Although part of the general fund, this money must pay for mandated state or federal programs. The county is, for instance, obligated to help pay for administering welfare programs. Development Agency: $41.5 million This money helps pay for projects such as low-income housing and the airport noise-abatement program. Assessment Districts: $444.7 million This money goes for specific projects paid for by area residents. Special Districts: $560 million This money is channeled to special projects, most notably the Santa Ana River flood control project, to which the federal government is a major contributor. Special County Operation: $679.5 million This part of the budget is earmarked for self-sustaining county operations or those funded by monies that can only be used for a specific purpose. County firefighting and park acquisition are among these. Special Reserves: $649.9 million This money is for purposes such as replacing worn out equipment or covering workers’ compensation and unemployment claims. How the Discretionary Money Is Spent Health Services: 9.7% Community and Social Services: 15.6% General Government and Services: 18.9% Capital Improvements: 2.8% Other: 3.7% Public Protection: 49.2% Environmental Management: 0.1% Budget Deficits Programs supported by discretionary funds have to compete against one another for scarce money. Larger deficits are expected in the coming years. 1991: 67.7 1992: 100.5 1993: 93.1 1994: 90.8 1995: 84.2 Source: County Administrative Office