County Gets OK to Tap Its Savings Fund : Finances: Securities and Exchange Commission tentatively agrees to plan for borrowing $125 million from employee program. Action helps save budget compromise that avoids layoffs and cutbacks.
In a move that should avert immediate fiscal disaster for county government, the Securities and Exchange Commission staff has tentatively agreed to allow Los Angeles County to borrow as much as $125 million from its employee savings program, officials said Monday.
County officials have been counting on the money to balance the 1992-93 budget and to pay for law enforcement, hospitals and other items. The money is to be used to fund the county’s early retirement program.
“It’s good news,” said Mary Jung, top assistant to Chief Administrative Officer Richard B. Dixon. “It’s one of the key assumptions that we had in our fiscal forecast, and it’s one of the cornerstones to balancing this year’s budget.”
Dixon announced the tentative agreement in a memorandum to the Board of Supervisors. He said the agreement, which is yet to be formalized, was reached during two days of meetings last week in Washington with SEC Chairman Richard C. Breeden and SEC commissioners. Leaders of county employee unions were present.
SEC officials could not be reached for comment Monday.
The proposed
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