‘Predatory’ State Assailed by Officials of Six Cities

From the flush 1980s when city spending programs followed the ways of a booming California economy, it has come to this:

Inside an uncompleted Costa Mesa fire station, officials from six Orange County cities gathered Tuesday to list unprecedented budget cuts and assail the Legislature for its “predatory” ways in threatening to shut off millions in critical city revenues to help offset the state’s $11-billion deficit.

“We are all suffering severely,” Costa Mesa Mayor Mary Hornbuckle said. “Now, we are looking at added reductions from the state. This building,” she said, surrounded by bare, cinder-block walls, “is a symbol of the tough economic times we face.”

The long-delayed fire station will be completed in time, but Hornbuckle said her city can no longer afford to hire the nine additional firefighters planned to staff it. In the meantime, a fire protection deal has been struck with Santa Ana to cover Costa Mesa’s boundary north of the San Diego Freeway.

“We are stretching our fire and paramedic services to the limit,” the mayor said.

Hornbuckle and the officials representing other cities at Tuesday’s news conference said they have never seen such fiscal troubles as now shadow their towns. And with the state threatening to claim as much as $2.8 billion in vehicle license fees and property tax revenue from Orange County cities, it can only get worse, they said:

* In Santa Ana, officials have proposed eliminating the city-run library service, recreation activities, some city-sponsored community events and some other services should the state take a share of the city’s license fees and property tax revenues.

* Just to balance their 1992-93 budget, Newport Beach officials were forced to take $4 million from the city’s reserve fund, chop capital-improvement projects and trim police. The looming state cuts, Mayor Phil Sansone said, would mean dirtier beaches and further cuts to the city’s public safety departments.

* In Irvine, recession-related losses in sales tax revenue and development fees accounted for much of a $23-million shortfall through January. With the elimination of 10% of the city’s work force in the last year, Mayor Sally Anne Sheridan said the city is left with staffing levels matching those of four years ago. Further cuts mandated by the state would require 60 more layoffs.

* Even Laguna Beach, buoyed by a rich property tax base, is not immune. Councilwoman Lida Lenney said Tuesday that the city stands to lose more than $2 million in future cuts by the state. That loss, she said, would most surely be made up in a reduction of public safety functions.

Said Costa Mesa City Manager Allan L. Roeder: “Last year was the first time in the city’s 39 years that we had to draw from our reserves, and we will have to do it again. The reality is that in the early ‘80s, cities were a reflection of the economy and of the population as a whole. They were on a living-high binge, and some of that has come home to roost.”

Since that time, Roeder said, most cities have been attempting to pare their budgets to better reflect anticipated revenues, especially those forecast in the current recession.

Tuesday, much of the criticism was directed at the state for what Irvine Mayor Sheridan described as constant “raiding” of city revenues to make up for shortfalls in Sacramento.

“Leave our cities alone,” Sheridan said, urging state officials to look elsewhere in taking care of their lagging revenues.

Santa Ana City Manager David N. Ream characterized the state’s proposal to dip into city coffers as “predatory public policy.”

“I’m outraged,” he said, taking a turn before a cluster of microphones. “Here we are faced with reopening our budget after it’s already been approved by the City Council. These aren’t small cuts to the city of Santa Ana. This is real serious.”

Ream said 60% of the city’s budget pays for police services for the city. Recent accounts of growing gang influences and violent crime have made public safety a major issue at City Hall.

“You can’t continue to swallow these kinds of hits without laying off police officers,” Ream said.

Also draining city budgets in recent years have been additional fees charged to cities by county government with the approval of the state.

As an example, Ream cited increased booking fees charged to cities for prisoners brought to the Orange County Jail. The increased fees were expected to cost Santa Ana $3 million in the fiscal year ending this month.

“The state is giving the county a hunting license to collect fees from the city,” the city manager said.

Roeder of Costa Mesa said that one possible answer in what has been a constant fight for public money would be a state constitutional amendment guaranteeing some minimum level of funding to local governments.

Roeder and the other local officials, however, conceded that such an amendment could not deal quickly with the current budget crisis.

“With this (amendment), we wouldn’t have to go through this annually and the state would learn to live within those budgets,” Roeder said. “Right now, we’re at the bottom of the food chain.”

Times staff writer Gebe Martinez contributed to this article.

Lean Streets Highlights of how the California Legislature’s proposals to divert funds from municipalities would affect six Orange County cities: Costa Mesa: Would eliminate eight full-time positions and reduce part-time staff and salaries. Hiring of nine Metro Fire Station firefighters and two police officers has already been postponed. Irvine: Would require layoffs of 60 full-time employees in addition to the 91 positions eliminated in recent months. Laguna Beach: City administrative staff is already reduced to below 1972 levels in spite of a 59% population increase. Reductions in revenue would force an undetermined number of layoffs affecting police, fire, paramedic and lifeguard services. Newport Beach: An undetermined number of positions would be eliminated, mostly from police, fire and paramedic ranks. Santa Ana: Personnel would be reduced by 193 positions, including 80 police, fire and paramedic jobs. Community events and recreation programs would be eliminated and city-run library turned over to the county. Tustin: Would defer or eliminate street resurfacing program, defer or cancel construction of a community sports complex and a gymnasium targeted for youth programs. City-funded special events, such as Tiller Days, and Concerts in the Park, would be eliminated. Sources: Cities Researched by JANICE L. JONES / Los Angeles Times