LA PALMA : Cost-Cutting Panel Proposed for City

With state leaders considering cutting some funding to cities, City Manager Pamela Gibson plans to ask the City Council tonight to form a special committee that will look at ways to slash city spending by $756,000.

State legislative leaders, trying to balance the state budget amid a projected $11-billion deficit, last week proposed cuts in revenue from property tax funds and vehicle license fees that have traditionally been returned, in part, to cities. If those cuts go through, La Palma will have to trim about $750,000 from the 1992-93 budget adopted by the council earlier this month, Gibson said Monday.

The potential loss of revenue would amount to 15% of the city’s general fund, Gibson said.

If formed, the special budget panel will look at eliminating programs such as Drug Abuse Resistance Education, or DARE, Gibson said. It will also consider cutting allowances for a police dog from the Police Department’s budget and eliminating or reducing community recreation programs, she said. In addition, fees might also be added or increased to help recoup the cost of some city programs.

No cuts will be made to any program unless necessary or after the City Council considers them during a public discussion, Gibson said.

The League of California Cities sent a notice to all cities last week warning of the possible cuts. Cities throughout the state stand to lose about $2.8 billion in lost property taxes and up to $900 million in vehicle license fees, which would be transferred to the counties. Orange County cities stand to lose a total of about $40.7 million.

The Legislature is working to adopt a balanced state budget before July 1, the beginning of the next fiscal year.

“Hopefully they will come up with something that is equitable,” Gibson said. “But looking how bad of shape the state budget is in, I can understand why they’re looking at the cities.”