Proposed Health Shift Stirs Concern

Calling Gov. Pete Wilson’s $55.4-billion budget proposal a “complicated scheme,” Ventura County officials said Friday they are skeptical of the governor’s plan to shift $5.4 billion in health and welfare programs from the state to local governments.

While Wilson’s proposal would give local government more control over mental health, welfare and other health and social programs, county officials said the governor’s spending plan could leave the county without adequate funds to cover the program costs.

“Until we are able to have some kind of guaranteed revenue, everything is up in the air,” Supervisor Maggie Kildee said.

Added Chief Administrative Officer Richard Wittenberg: “The concept of giving more local control is very sensible. But we could be left with a very serious problem in funding.”

Under Wilson’s plan, health and social programs would become a “revenue-neutral transaction,” accomplished by shifting sales and property tax funds from the state to the counties.

Local governments would receive the revenue from a half-penny of the current statewide sales tax, worth about $1.5 billion annually, plus money from the Vehicle License Fee fund, about $740 million. They also would receive some additional property tax money.

But Wittenberg said he is concerned that the caseload of people receiving health and social services would increase at a faster rate than the revenue sources--leaving the county scrambling to come up with funds to pay for the programs.

“It has the possibility of short-funding us,” Wittenberg said.

Ventura County Auditor-Controller Thomas O. Mahon said he was also skeptical.

“What has happened in the past, when they transferred programs to us, is that we have never gotten enough money to take care of the additional costs,” Mahon said. “I’m not really optimistic.”

But Supervisor John K. Flynn said the county should give Wilson’s plan a chance.

“I think the governor’s proposal is outstanding,” Flynn said. “The governor sounds like he is trying to reduce the massive state bureaucracy. That’s what the local people said they’ve wanted for years. Anyone who is nay saying this is not being true to principle.”

Penny Bohannon, the county’s legislative lobbyist, said she hopes to make it clear to legislators that Ventura County cannot take over health and welfare programs without sufficient funding.

“It behooves us all to give it a chance and try to make it work,” Bohannon said. “The end result should be better service to clients, the better use of tax dollars and a diminishing of the state bureaucracy.”

City officials said they were pleased that Wilson’s budget did not again propose sharp cuts in local funding. Last year, Wilson’s budget moved $2.6 billion from cities and counties to public schools.

“It appears that the governor has recognized he cannot continue to take from cities to make up for state shortfalls,” said Lin Koester, Simi Valley’s city manager. “We don’t intend on letting our guard down. We’ll be watching closely over the next few months as it (the budget proposal) works its way through the legislative process.”

Simi Valley Mayor Greg Stratton called the budget “a great start.”

“It’s better than the way we started last year,” Stratton said. “Most of us will be happy just to be left alone.”

But Thousand Oaks officials were less optimistic.

“Frankly, I’m not impressed with many of the initiatives that have come from the state,” Thousand Oaks Mayor Elois Zeanah said. “I can understand residents’ concerns about government in general, and how we’re spending taxpayer money. The answer is to have a more efficient government.”

Thousand Oaks Councilman Alex Fiore scoffed at Wilson’s claim that counties would be able to fund their new responsibilities with the half-cent sales tax and vehicle licensing fees.

“I think it’s an impossible situation,” said Fiore, a 30-year veteran on the Thousand Oaks council. “The governor seems to think the half-cent sales tax is some kind of a windfall, but I don’t believe that.”

Although most of the burden for funding health and social services will fall on counties, Fiore predicted that cities also would soon feel the effects of California’s cash crunch.

“It always manages to get down to the cities,” Fiore said. “We’ve lost money since the state budget crisis hit, and yet the cities have caused none of it.”

Times staff writers Sara Catania, Peggy Y. Lee and Stephanie Simon and correspondents Matthew Mosk and Scott Hadly contributed to this story.