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County Budget Shortfall Put at $93 Million : Finances: Governor’s 1993-94 budget promises third year of deep cuts in services. O.C. expected to lose nearly $60 million from shift of property tax money to schools.

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TIMES STAFF WRITER

State government’s worsening financial crisis is leaching further into Orange County, as local officials were presented Thursday with an updated budget report placing the county’s shortfall at a massive $93 million.

The report, distributed at a briefing of top county staff members, shows that the shortage of local funds will probably continue to grow as the state looks to local governments to solve its own budget problems.

As presented, Thursday’s analysis of Gov. Pete Wilson’s 1993-94 budget proposal represents only a starting point for local planners, but it almost certainly promises a third consecutive year of deep cuts to county services.

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“From an Orange County standpoint, the governor’s budget . . . would have dramatic and far-reaching impacts,” County Administrative Officer Ernie Schneider said in the report. “The governor’s budget does not offer counties much reason to be optimistic.”

The county is expected to lose nearly $60 million alone to the state, resulting from a proposed shift of property tax money to fund the state school system, according to the report. Much of that money now funds critical county services for public safety, libraries, flood control and the network of harbors, beaches and parks.

Board of Supervisors Chairman Harriett M. Wieder said the shortfall represents the largest in her 14 years on the board and would require “very hard choices” to be made, including possible layoffs.

“Up until now, we’ve been used to solving these problems with mirrors,” Wieder said. “Now, we don’t even have those any more.”

Anticipating public outrage, Wieder said the county is requesting that members of the state legislative delegation sit with them on April 16 during initial budget hearings to help answer residents’ concerns about likely service cuts.

“At this time, it’s important for us that we share the responsibility,” she said. “I would want to know from the people what services they truly want.”

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While the report placed the county in a particularly threatening financial position, Wieder and other top officials said it was too early in the process to indicate what cuts would be made. Budget plans are not due from the county’s various department heads until April.

“This is not a promising report,” Orange County Budget Director Ronald S. Rubino said, adding that the state’s raid of local funds represents nearly a 75% increase over last year. “It just keeps growing and growing.”

Just last month, officials were already predicting dire results, when Gov. Wilson unveiled his budget outline. Orange County officials said at the time that the state spending plan could prompt the county, cities and colleges to freeze salaries or force broad layoffs.

Robert L. Richardson, an aide to Supervisor Roger R. Stanton, said Thursday’s report almost certainly means that the countywide hiring freeze would remain in place and staff levels would continue to be reviewed.

As a result of service cuts in recent budget years, Richardson said, 7% of the positions in the county’s 17,000-member work force stand vacant.

Richardson said early-retirement programs have been offered in attempts to pare staffs in two of the county’s largest departments, the Environmental Management Agency and the Health Care Agency.

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Although it was unclear whether actual layoffs will result, the Stanton aide said, “it would be very difficult to avoid that” given the current financial projections.

“This is just the beginning of a long and difficult process,” Richardson said. “The hiring freeze has helped put us in a better position. I know we are not adding to the problems the state is already making for us.”

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