State May Spare Fire Dept. : Budget: County officials had been prepared to close 18 stations and lay off nearly 300.

As state legislators forged ahead with a compromise state budget, Ventura County officials held out hope that the county Fire Department would be spared deep cuts.

Under a version adopted early Monday morning, the Assembly agreed to exempt local fire districts from a $2.6-billion shift of property tax revenue from cities, counties and special districts to the schools.

“I really feel that all of our lobbying efforts paid off,” said Supervisor Vicky Howard, who has made numerous trips to Sacramento to meet with legislators. “Hopefully, they’ve realized what they were doing to us.”

County Fire Chief George Lund added: “This is encouraging news. We don’t have all the information. It’s going to get better than worse.”

County officials had feared that the property tax shift would cost the Fire Department as much as $20 million next year--forcing the county to close 18 stations and lay off 280 employees.

However, if the Senate supports the Assembly-passed budget, the county supervisors said they may be able to reinstate some of the $3.8 million they cut from the Fire Department’s budget last week.

“It seems to me if the state is making them whole, in good faith we ought to look at rescinding the action we took last week,” said Supervisor Maggie Kildee.

However, both Kildee and Howard said they would like the Fire Department to look for ways it can be run more efficiently. On Monday, they called on the county to launch an independent audit of the department to reduce costs.

Despite the heartening outlook for the Fire Department, officials said the fate of other county operations will depend on whether residents agree in a statewide vote in November to make permanent a temporary half-cent surcharge on sales tax.

Under the Assembly-approved plan, the governor has agreed to extend the half-cent tax for six months and send the $700 million to local governments. In addition, local governments could get an extra $1.4 billion annually if voters make the sales tax permanent.

If approved by a majority of California voters, the sales tax revenue would cover most of the money lost to the schools. Ventura County officials predict that the sales tax would reduce the project shortfall of $36 million to somewhere between $6 million and $15 million.

In order to receive the extra sales tax revenue, the supervisors must endorse the plan--or county voters must approve a Nov. 2 ballot measure extending the half-cent tax. The ballot measure is expected to easily receive support of the board.

Without the sales tax revenue, county officials said they would be forced to slash $27 million from their budget by the end of December, the date when the temporary tax would sunset.

“We are not out of the woods yet,” Howard said. “It means we won’t know where we are until November. It’s dragging us into an excruciatingly long period.”

Howard said the supervisors will face a dilemma: Either make the $27-million cut when they adopt the county’s budget next month, anticipating that the tax will fail, or wait, gambling on the success of the measure.

“If it doesn’t pass, we are in a deeper hole,” Howard said. “I think we have to go ahead and take the worst-case position.”

On July 12, the board will begin its budget hearings. The majority of the county departments have been asked to find ways to cut their spending by 12.5% next year, in anticipation of a $20-million loss in state funding.

“It’s important for the board to be incredibly prudent,” said Chief Administrative Officer Richard Wittenberg. “We could be hurt in big numbers if the extension does not pass.”

He blasted the Assembly’s decision to shift the $2.6 billion in property taxes away from local government.

“It’s a property tax grab and it’s inappropriate,” Wittenberg said. “What that means is the state is establishing a precedent. Whenever they have some difficulty, they simply go into our property tax base and take it. It’s disappointing.”

Assembly members representing portions of Ventura County were divided on the budget plan. Assemblyman Jack O’Connell (D-Carpinteria) and Assemblyman Nao Takasugi (R-Oxnard) voted in favor of the shift the money from local governments to schools--an idea pushed by Gov. Pete Wilson.

Assemblywoman Paula Boland (R-Granada Hills) voted against the property tax transfer. “In true conscience I just couldn’t vote for a $2.6-billion shift,” said Boland, who represents Simi Valley and Fillmore.

The two-term lawmaker said Wilson twice called her in the final hours urging her to support the compromise. “It’s always tough,” she said, to oppose the governor.

O’Connell, meanwhile, said he was pleased with the Assembly action.

“This reflects the epitome of compromise,” he said. “There are no real winners. And the county government will become lean and mean.”

Meanwhile, the budget passed by the Assembly increases community college student fees 50%, from $10 per unit to $15 per unit. Fees would be capped at $150 per semester, so that full-time students taking 15 units would have no fee increase.

Jim Walker, president of Moorpark College, said he is concerned a 50% hike would turn some students away.

“Anytime you put more of a financial burden on students, you are going to lose some students,” he said. “Needy students are going to be discouraged.”

Last year, community college students were hit with an increase that bounced fees from $6 a unit to $10 a unit.

Sofia Escamilla, a 19-year-old Ventura College student, said she would have to work more hours at a part-time job to cover the increase. “I’m working my way through school,” Escamilla said. “Every time I hear about these fee increases, I get so furious.”

Times staff writers Mark Gladstone and Peggy Y. Lee contributed to this report.

BUDGET MATTERS

California Assembly approves $52.1 billion state budget after an all-night session. A1