‘Sorry’ Puts S.D. in Line for Funds

Ending a public spat between local officials, Assemblyman Steve Peace (D-Chula Vista) late Tuesday agreed to introduce a last-minute budget amendment allowing San Diego and four neighboring cities to ease their financial problems by tapping into surplus port district funds.

The amendment came with a price, however. San Diego City Manager Jack McGrory had to first agree to send a written apology for bad-mouthing the quick-tempered Peace while discussing the port funds earlier in the week.

“Steve asked for a written apology and Mr. McGrory said he would give it,” said David Takashima, Peace’s administrative assistant.

As it worked overtime on the state budget, the Legislature had agreed to ease some of the financial pain on California’s largest cities by allowing them to tap into the ready reserve accounts of nearby ports.

The move had been suggested to Assembly Speaker Willie Brown (D-San Francisco) during a summertime visit to Sacramento by Mayor Maureen O’Connor, who has long coveted a port district reserve made fat by harbor rents.

The original version of the budget said only certain charter cities could tap into the reserves--language clearly aimed at San Diego as well as Los Angeles, San Francisco, Long Beach and Oakland.

But during a legislative session Saturday night, Peace moved to strike language referring to the San Diego Unified Port District, which is managed by representatives from San Diego, Chula Vista, National City, Imperial Beach and Coronado.

Peace said the formula would have given millions to only San Diego and Chula Vista--the two charter cities--and “unfairly screwed” the others.

That move drew cries of protest in San Diego, where O’Connor said Peace was not “operating in the best interests” of the cities and McGrory called the maneuver “irresponsible and disgusting.” McGrory estimated the city would have gained $4 million, enough to make up about 35% of the $11.5 million the state intends to take away in property tax revenues.

The rift had been patched up by Tuesday afternoon and a mollified Peace agreed to craft an amendment putting the Port District back into the spending bill. This time, all five cities would have to share in the reserves under a formula that they and the Port District would adopt.

Takashima said Peace would introduce the amendment late Tuesday, as the Legislature met late to resolve the budget stalemate and end the 1991-92 session.