State Must Pay 10% of Quake Costs : Recovery: Clinton Administration denies request for 100% federal reimbursement of public sector damages. California’s share will be approximately $417 million.

The Clinton Administration has decided against providing earthquake-stricken California with the unusually high level of disaster aid that Florida received after Hurricane Andrew to repair roads, schools and other damaged public facilities.

A bipartisan group of California officials, led by Republican Gov. Pete Wilson and Democratic Sen. Dianne Feinstein, began pressing the White House shortly after the Jan. 17 temblor for 100% reimbursement of public works reconstruction costs--just as the Bush Administration gave Florida in September, 1992.

But the Administration, citing a new “fiscally responsible” policy, insists that California pay 10% of most of the estimated $3.4 billion to repair public sector damage in Southern California.

Administration officials said the Florida aid package was sweetened by political necessity, pointing out that it was delivered two months before the 1992 presidential election and against the advice of federal emergency administrators.

“Our position is that it’s appropriate for states to bear 10% of the cost for the total amount in order to ensure better accountability in the spending of those funds,” said Tom Epstein, White House liaison for California. “That has been our consistent position since this Administration took office.”

The 10% formula was applied last summer during the Midwest floods, the first major federal disaster on the Clinton Administration’s watch.

The $3.4 billion for rebuilding public facilities is contained in the $8.6-billion earthquake aid package that is moving through Congress and is expected to land on the President’s desk this week. While the federal reimbursement formulas are not subject to legislative approval, White House officials say they consider the 100% formula “politically unacceptable” on Capitol Hill.

Nevertheless, Wilson Administration officials and other Republicans said they intend to keep pushing for full reimbursement.

“I think the President ought to do as much for California as was done for Florida,” said Assembly Republican Leader Jim Brulte.

California Democrats say Clinton will not budge and that the fight is over. Officials who continue to complain risk annoying the White House and could jeopardize funding for other California projects, they warn.

“I think it’s one thing to say we’re trying to do the best for California and we want 100% reimbursement,” said Rep. Julian C. Dixon (D-Los Angeles), who helped steer the Administration’s aid package through the House. “It’s another thing to be real and say we have a new Democratic President who has come out with a very generous 90-10 formula and that’s the deal.

“I really think it is a dead issue at this point.”

Funds to repair public structures make up one of two major forms of disaster relief provided by the Federal Emergency Management Agency. They are used to rebuild mass transit, roads, libraries, schools, universities, sewers, water systems and other state or local government-owned facilities.

In most federally declared disasters, FEMA pays 75% of the cost of repairing government structures and systems. But in cases of catastrophic disasters such as the Florida hurricane and the Northridge quake, the cost-share ratios often are adjusted to further help financially battered states and local communities.

With the Northridge quake, the federal government will provide 75% reimbursement for the first $300 million in damages. The Administration changed the reimbursement level for the remaining $3.1 billion in costs, agreeing to pay 90% of that amount.

Under this arrangement, California’s share of public facility repairs will amount to approximately $417 million, according to damage estimates from the Northridge quake released Tuesday by the state Office of Emergency Assistance.

In Florida’s case, FEMA paid $1.7 billion and Florida $32 million for public sector repairs, according to FEMA officials.

If California had been treated the same as Florida, the state would pay only $75 million--a saving of $342 million.