County Finds State Spending Proposal Fair

Los Angeles County’s chief financial officer said Friday that it is too early to fully assess the impact of the proposed state budget on the county, but that no massive cuts in programs appear imminent.

“Based on a very preliminary review, the governor’s budget appears to have treated counties fairly, given the fiscal problems facing the state,” Richard B. Dixon, the county’s chief administrative officer, said in a report to the Board of Supervisors.

The $12-billion county budget was “based on more conservative economic forecasts” than the state budget, Dixon said. But, he added, a continued recession, with declining tax revenues and increasing welfare rolls, portends cuts in the 1992-93 fiscal year, which begins July 1.

Gov. Pete Wilson’s proposed state budget projects that revenues from sales taxes and motor vehicle license fees--on which counties are relying for funding health and welfare programs--will be $150 million short statewide--possibly $30 million in Los Angeles County, according to one county financial analyst.

“Some revenue shortfall is hitting this year,” Dixon said. “We believe that we have sufficient resources to absorb it.” In anticipation of budget problems, Dixon said, he has encouraged departments “to delay and reduce expenditures without jeopardizing critical public services.”

Dixon expressed concern that the governor’s proposal to eliminate some health care now reimbursed by Medi-Cal, the state’s health insurance for the poor, “may create problems for us in the county health system” by shifting patients from private hospitals to county facilities.

However, Dixon cautioned, a thorough assessment of the county’s financial health must await the outcome of legislative action on the governor’s budget and Christmas sales tax figures.

“The preliminary nature of this budget must be stressed,” Dixon said. “Traditionally, the Legislature has had great difficulty in reaching agreement on a budget that requires significant reductions in vital human services.

“A clearer picture of the state’s fiscal condition will be available this spring when when the Department of Finance issues the May revisions to the proposed budget,” Dixon said.