Higher County Taxes, Library Closures Proposed : Budget: The chief administrative officer says increased business and utility levies could bring in at least $29.2 million.

Chief Administrative Officer Richard Dixon has proposed raising at least $29.2 million in new utility and business taxes in Los Angeles County’s unincorporated areas, officials said Monday.

County officials, who are grappling with an unprecedented $588-million budget shortfall, also have recommended closing as many as 12 public libraries and cutting back services at all 92 county-operated libraries.

The increase in utility and business taxes would affect about 1 million residents of unincorporated communities such as East Los Angeles and Willowbrook.

In a letter to the Board of Supervisors dated Sept. 12, Dixon said the tax increases would allow the county to maintain a cash reserve in case of “further midyear budget problems.”

Dixon added, however, that he is “very hesitant to recommend the assessment of increased taxes in the current recession.”

He also said that the Board of Supervisors has the authority to create a business license tax on all firms operating in unincorporated areas. The county currently imposes a business-license tax only on landfills. The new tax would raise as much as $12.9 million.

For each percentage point in utility taxes on electricity, gas and telephone service, the county would raise $6.7 million, Dixon said. The county currently taxes those utilities at 5%.

Dixon also suggested that the county create taxes on cable television fees and on water and sewer service. A 5% tax on these services would raise $7.2 million.

The reimposition of a 2% tax on gate receipts at amusement parks would raise $2.4 million, Dixon said. Six Flags Magic Mountain and Universal Studios would be among those affected. The board adopted the tax as a temporary measure during fiscal 1990-91.

“We can’t rule out anything,” said Supervisor Ed Edelman. “No one wants to support new taxes; it’s not popular. But on the other hand, we can’t let basic services deteriorate to the point that people suffer.”

Los Angeles County’s fiscal crisis was intensified this month when the state adopted a budget that substantially reduced payments to local governments.

The state budget, for example, reduced by $8.3 million the funds available to the county library system.

County Librarian Sandra F. Reuben said that besides closing about a dozen libraries, the county will eliminate Sunday service at all but seven facilities and will reduce by 60% the purchase of new books.

“It’s so unbelievable that this can be happening so fast,” Reuben said. “It’s like an earthquake coming through. The public will be shocked to see this happening.”

Reuben added that hours will be cut at all county libraries. Officials will announce in about two weeks which libraries will be closed, Reuben said. Cutbacks and closures probably will be permanent, she said.

Edelman said the closure of so many libraries would have a “devastating effect” on the communities they serve. He said the board should consider other options before taking the such a drastic step.

“We ought to figure out a way we can possibly maintain those services rather than seeing that many closed,” Edelman said.

The Board of Supervisors is scheduled to consider the library cuts at its meeting Thursday.