State Would Shift More Social Services to County

Gov. Pete Wilson proposed Friday accelerating changes in the relationship between state and local government by shifting more money to counties annually and delegating control over a vast array of social services.

If approved by the Legislature, Wilson’s transfer of state money would total more than $5 billion and amount to about 13% of the $40-billion state general fund.

Local officials and some Democratic lawmakers lauded the concept of giving counties more power, but were skeptical that Wilson’s budget would give them the money needed to carry out the major new duties.

“We’re optimistic at this point,” said Yvonne Brathwaite Burke, chairwoman of the Los Angeles County Board of Supervisors. “This restructuring should provide counties with greater accountability and flexibility.”

The governor took a first step toward delegating authority to local government in 1991, when he directed that counties take control over much of the care for the mentally ill, and transferred $2 billion to help cover the costs. The $2 billion for mental health is part of the $5.4-billion shift contemplated in the latest proposal.

Also counted in the $5.4 billion is $1.4 billion from the extra half-cent sales tax approved by voters in November in Proposition 172 for local law enforcement and firefighting.

In addition, the governor proposed that the state pick up $387 million more of the cost of operating courts, and allow counties to keep almost $300 million in fines and property forfeitures.

Wilson declared that the realignment in 1991 was a success, and wants to extend it to include welfare, health care for indigents, foster care, in-home support services for disabled people and other programs.

“We’re going to get better results,” said Finance Director Russell S. Gould, who as head of the Health and Welfare Department engineered the first realignment. “As we release and take away some of the mandates . . . we’ll have more flexibility.”

The shift of money to counties represents a reversal from a year ago when Wilson’s budget moved $2.6 billion from cities and counties to public schools. Once last year’s budget was approved, the governor appointed a committee to study ways to change the state-county relationship.

“This is a much more complete proposal, looking at the whole program and resource relationship of local government and state,” Gould said.

The proposal contemplates that the state will provide the necessary money through a combination of sales and property taxes. The proposal includes shifting $1.1 billion in property tax funds now earmarked for public schools. Wilson promised to make up for any shortfall in schools with other state money.

To help counties obtain more revenue, the governor is offering counties $25 million to improve their property tax collection systems.

The state would shift $1.88 billion to pay for mental health, welfare, Medi-Cal and other social service programs. The county’s share of Aid to Families With Dependent Children, the main welfare program, would be raised to 22.8% from 5%. Counties also would pick up an 11.5% share of the cost of Medi-Cal, the health care program for poor people. Local governments now pay no part of Medi-Cal.

Counties could cut their welfare costs--and hang onto the savings for other programs--by taking a harder line on eligibility, and by providing job training to recipients in order to move them off the welfare rolls.

Before the proposal can take effect, legislators and Congress would have to make changes in state and federal law granting counties more authority over welfare. Details also must be worked out for dividing the money among California’s 58 counties.

The governor acknowledged that the plan’s success will depend on his ability to persuade the federal government to pick up the multibillion-dollar cost of illegal immigrants and refugees living in California.

County officials, convinced that they can operate social service programs more efficiently than the state, long have called on Sacramento to give them the money and authority over welfare.

Los Angeles County was especially hard hit by the property tax shift to schools last year, having lost more than $500 million. County officials said they are seeking assurances that as program costs escalate, the state would provide additional money.

“These entitlement programs are high-growth programs,” said Jerry Roos, Los Angeles County budget director. “We need to look closer to make sure the revenue will be there.”

Times staff writers Carl Ingram in Sacramento and Fred Muir in Los Angeles contributed to this story.