25% Cutback in Services Proposed by County Officials

Citing dire new projections that Los Angeles County may face a budget shortfall exceeding $1.1 billion, officials have proposed a 25% reduction in most county services, including hospitals, welfare and law enforcement, according to documents released Friday.

The new budget analysis by interim Chief Administrative Officer Harry Hufford blames the projected shortfall on a massive shift in the allocation of state property tax revenues. Gov. Pete Wilson has proposed redistributing $2.6 billion in property tax funds from local government to schools.

Gerald A. Roos, the county’s top fiscal officer, said the property tax shift would constitute the biggest loss of revenue to Los Angeles County since Proposition 13 was approved in 1978.

“It’s the worst I’ve seen since I’ve been here,” said Roos, a 24-year county veteran. In 1978, Roos said, the state had a large surplus and was able to help counties stay afloat despite the loss in property tax revenue. No such bailout is expected this year.

The county has a $13-billion budget--larger than that of many states. Much of the budget consists of federal- and state-mandated programs.

In a memorandum to the Board of Supervisors, Hufford proposed a record $944.9 million in budget reductions, including a $470.4-million cut in the Department of Health Services and a $152.7-million reduction in the Sheriff’s Department.

Hufford’s budget analysis significantly increased the county’s projected shortfall for fiscal year 1993-94. In January, retiring Chief Administrative Officer Richard B. Dixon had projected a deficit of $845 million.

The new budget forecast is certain to pressure county labor leaders to accept wage reductions and other concessions, and seems to increase the possibility of widespread layoffs among the county’s 80,000-member work force when the budget is adopted in July.

Union leaders have said they would resist any attempt to reduce services or lay off county workers.

“If there are any additional cuts . . . you will decimate the public services that maintain the quality of life that brings business to L.A. County,” said Guido DeRienzo of the American Federation of State County and Municipal Employees, which represents several hundred county workers.

“The taxpayers are going to have to insist that the state Legislature and governor not cut as deeply as they’ve proposed,” DeRienzo said.

The 25% reduction is the most recent of several budget plans being considered by county officials. Earlier, the Board of Supervisors ordered Hufford to draw up two plans that would reduce county services by 10% and 15%.

Other departments that would be hard hit under Hufford’s most recent plan include the Probation Department and the Department of Mental Health, each of which would be cut by $65 million.

Under Hufford’s plan, another $40.5 million would be cut from the district attorney’s office.

County officials are hoping that the state will adopt a five-year budget plan that would allow the county to implement rollbacks over a longer period, thus lessening the impact in the coming fiscal year.

Hufford said in his memorandum that if the state adopts a five-year budget plan, the county’s 1993-94 budget would only need to be reduced $340 million.

Roos said specific program cuts will not be determined until officials submit budget plans for each county department beginning in April.

Last year, the county faced a $588-million shortfall, but balanced its budget by borrowing money from an employee savings plan. The county also eliminated 1,900 jobs through an early retirement program. Some workers have been laid off in county museums and other departments.