County Dug $300-Million Hole, Critics Say : Finances: Analysts say the supervisors’ budget compromise has solved current problems but will lead to a worse situation next year.

In piecing together an eleventh-hour budget compromise, the county Board of Supervisors has dug what analysts and critics say will be at least a $300-million hole in next year’s budget.

The spending accord, they say, solves today’s budget crisis by creating a new one that is likely to hit the county in nine months, at the outset of the 1993-1994 fiscal year, and drag on for several years.

“We may have a cushioned landing now, but we’ll have a rocky landing in a year,” said Supervisor Ed Edelman, who cast the lone vote against the unusual budget compromise that brought liberals and conservatives together.

As the dust settled after a frantic day of politicking on Tuesday, county budget analysts were still attempting to determine just where all the money will come from to restore spending cuts in the health, sheriff’s and other critical county departments.

At least $200 million will be “borrowed” from employees by deferring pay and benefit increases, according to budget analysts and aides to supervisors. While the exact terms of this arrangement are still to be negotiated with employee groups, the board indicated that up to $250 million--plus interest--would have to be repaid in the 1994 fiscal year, but there is no guarantee that the money will be there.

Other budgetary wizardry that made the compromise work includes one-time-only financial maneuvers--such as refinancing county debt to pay for day-to-day operations. These funds may not be available, creating the prospect of an even worse fiscal crisis.

In some cases, cuts were restored and programs paid for with sources of funding that may not exist. For example, at least $60 million has been guaranteed to the health department in the compromise, but the funding is still to be determined.

“We’re not clear on the funding source,” said Gary Wells, deputy director of financial services at the health department, echoing the concerns of budget analysts.

The board also has yet to resolve a $65-million deficit in the county’s general relief program. Supervisors delayed a vote for two weeks on a proposal to slash monthly payments to the indigent to $299 from $341. Even if the reduction is approved, it would leave a funding gap of about $40 million, according to Mary Jung, deputy chief administrative officer.

In addition, the board has tied up every available dollar, completely depleting its reserve for emergencies, according to budget documents. Analysts say the rule of thumb used by the state for establishing a reserve is 3% of the total budget. That translates into about $300 million to $400 million for the county, which has a $13-billion budget.

“We’re sitting on the edge of an abyss,” Jung said. “This is not a permanent solution. It is a stopgap measure.”

Edelman was more harsh in his assessment. “They are engaged in risky deficit spending that will put us close to what happened in New York” in the mid-1970s, when the city slid into financial chaos and defaulted on its obligations, Edelman said.

“It’s borrowing from the future, and you just don’t do that,” he said.

Tom Silver, chief deputy to Supervisor Mike Antonovich, who helped draft the compromise, acknowledged that the agreement pushes some of the county’s financial problems into the future.

“We’ve never disguised the fact that we will have to make some harsh choices next year,” Silver said. “If everything goes against us, it’s true that we will have a severe budgetary situation.”

But Silver also held out some hope that economic conditions could improve or that additional state or federal funding may surface.

Supervisor Gloria Molina held out similar hopes, saying, “We are betting that (the economy) is going to get better. . . . And if it doesn’t, two years down the road we’re talking about even deeper cuts than now.”

Edelman argued that the gamble is too great.

“There were some hard, tough choices to be made here,” he said. “We could have put the county on a healthy course. Instead we put it on a treacherous course that will hurt the county more than if we dealt with the problems now.”

John Redmond, budget deputy to Molina, said the board was not trying to avoid hard decisions--in fact the board cut $250 million in spending programs on Tuesday alone. “They are just reluctant to say no to people in need,” Redmond said. “They drew the line at public safety and health.”

County Budget Highlights The Los Angeles County Board of Supervisors approved a $13 - billion budget. In doing so, supervisors reduced the budget requests made by many departments. Here is a list of the budget cuts and their impact on several county services:

DEPARTMENT: AMOUNT CUT IN DOLLARS

Agriculture/Weights and Measures: $659,000

Eliminates 15 positions, reducing produce inspection and making it more difficult to detect smugglers of banned fruit.

Animal Control: $432,000

Eliminates 10 positions, reducing hours at six shelters. Imposes higher fees for veterinary and cat licensing services.

Auditor-Controller: $2 million

Cuts 30 positions, reducing the department’s ability to process tax changes and refunds, accounting transactions and processing of claims.

Beaches: $1.3 million

Cuts 12 positions, postponing purchases of lifesaving and maintenance equipment such as lifeguard vehicles and inflatable rescue boats.

Coroner: $1 million

Eliminates 10 positions, possibly delaying autopsies, physicians reports, release of decedents to families.

District Attorney: $7.3 million

Eliminates approximately 100 attorneys, investigators and support staff positions.

Fire: $2.9 million

Modifies the staffing of all 12 fire patrols, eliminating 27 positions and possibly the use of a fire boat at Marina del Rey. Fire Station 67 in the Santa Monica Mountains was saved from closure after the board restored $1 million to its budget.

Library: $7 million

Delays the potential closing of 12 public libraries until Oct. 20; reduces service hours at all 92 libraries and eliminates Sunday hours at seven libraries.

Museums: $1.7 million

Cuts 20 positions. Discontinues the coordination of school tours. Schools will be responsible for arranging admission and conducting the visits. Also reduces educational programs, maintenance and temporary exhibits.

Parks and Recreation: $1.2 million

Eliminates 21 positions, permanently closing swimming beaches at Bonelli and Castaic regional parks; reduces ground maintenance at regional parks.

Probation: $27.1 million

Postpones the closures of 19 probation camps and elimination of 219 positions until May, 1993.

Public Works: $2.3 million

Cuts 11 positions, reducing road maintenance and construction projects, service in building safety checks and inspections and assistance at public counters.

Sheriff: $12.4 million

Restricts rescue personnel, reduces beds at jails by 700 and requires further cutbacks in the number of investigators and detectives.

Compiled by Times researcher Cecilia Rasmussen