Board Braces for Another 5% Budget Cut : Government: County supervisors expect the loss of state revenue to double. Analysts predict significant job losses.

Facing a sharp cut in state funding, Ventura County supervisors on Tuesday said they are looking for ways to slash another 5% from the 1992-93 operating budget--a move that could mean additional layoffs of county employees.

The supervisors said they expect to lose up to $14 million in state revenue on top of the $12 million in state funds that the county already had anticipated cutting from its $436-million General Fund.

“We are really looking at double what we anticipated,” Supervisor Vicky Howard said. “This is a very serious situation.”

Supervisor Maggie Kildee added: “It may mean some arms and legs have to come off instead of just tightening the belt.”

The county’s 25 department heads will be notified by memo today to identify possible cuts and report back to the board by Thursday afternoon. Supervisors are set to start deliberating the eliminations at a budget hearing on Monday.

Even without the new reduction, county budget analysts have said the county stands to lose 159 positions, about half of which would be in layoffs. Officials are uncertain how many more jobs will be lost with a 10% total funding reduction but said they are anticipating significant job losses.

“I guess we need to be prepared for the worst,” said Phillipp Wessels, director of the county Health Care Agency. “I’ve been in California 10 years, and this is the worst I’ve ever seen it. It won’t be easy to make the cuts.

“We are at the point we don’t have a great deal of leeway unless we start looking at the elimination of major programs and the elimination of employees.”

At stake is $2.8 billion in property-tax money now spent by counties, cities and special districts. The money represents the share of the property tax that the state shifted to local governments in 1979 to help them survive the property-tax reduction enacted by Proposition 13.

Legislators agree that the state can no longer afford the bailout and that the flow of dollars should be reversed, but they are divided over how to make the switch.

A proposal that was discussed in Sacramento on Tuesday called for cutting $720 million in property-tax revenue to counties. However, Steve Swendiman, the executive director of the California Assn. of Counties, told the supervisors at their meeting that the cut may come out to about $400 million, as proposed by Gov. Pete Wilson.

Under a worst-case scenario, county Public Defender Kenneth R. Clayman anticipated that he would have to lay off at least six attorneys.

“We would not be able to handle as many cases,” he said. “Someone else would have to be appointed to perform the task.”

Barbara Fitzgerald, chief deputy director of the Public Social Services Agency, said the department is facing steep cuts in support programs to the elderly and the young. Some administrative positions also are expected to be eliminated.

“Every part of it hurts,” she said.

Randy Feltman, director of the county Mental Health Department, added: “There are no contingencies that don’t involve layoffs. Some include major layoffs.”

Despite the proposed cuts, the supervisors agreed to continue using money from emergency reserves to help pay welfare checks and assist other state-funded services until lawmakers reach a budget accord.

The board voted 5 to 0 to continue borrowing $5.7 million a month from county reserves to make up for the state’s portion of funding for social services and the court system.

“We are talking about the neediest people in the county,” said Supervisor Maria E. VanderKolk.

But several supervisors expressed anger over having to provide stopgap funding to state programs when the county’s own programs are facing sharp cuts.

“I think it’s appalling that we need to continue these programs for these people,” VanderKolk said. “The state just expects us to continue.”

The board agreed to review the matter again in September if the state has not settled on a budget by then. Tuesday’s action ensures that about 8,500 people in Ventura County will continue to receive welfare benefits, the county court system will operate at full staff and foster homes for 500 children will be funded.

The county traditionally dips into its reserves to cover the programs while legislators grapple with the budget. But during the current stalemate in Sacramento, the county has been using its funds for 42 days, the longest it has resorted to using county money to bail out the state.

County Auditor-Controller Norman R. Hawkes informed supervisors that he no longer feels comfortable “carrying the state” without the continued approval of the board.

He also told the officials that he is fearful the county will not be adequately reimbursed by the state, because some programs may be cut when legislators complete the budget.