U.S. to Release Immigration Funds to State : Finances: The $33.4 million will help defray expense of jailing undocumented felons. Governor calls it ‘a drop in the bucket.’

Responding to a sensitive political issue, Justice Department officials said Thursday that they will expedite payment of $33.4 million to California, and smaller amounts to six other states to help cover the costs of imprisoning illegal immigrants who have violated criminal laws.

Atty. Gen. Janet Reno said the disbursement--the first of its kind by any Administration--follows pleas by governors, including California Republican Pete Wilson, that criminal illegal immigrants are an unfair burden on states because only the federal government can prevent illegal immigration.

Reno said the initial disbursement of $42 million to seven states will be followed in a few months by an additional $88 million, of which California again will receive the largest share. The first-year funding for state costs of holding illegal immigrants was approved by Congress as part of the department’s recently passed budget, with help from leading Democratic members of Congress.

Over the next six fiscal years, beginning Oct. 1, 1995, the massive anti-crime bill passed by Congress will give states an additional $1.7 billion for housing illegal immigrant prisoners. These funds, however, are yet to be appropriated by Congress.

Wilson’s office responded to the announcement by calling the initial grant “a drop in the bucket” compared to the state’s annual expenditure on criminal illegal immigrant inmates, which the governor’s office placed at $475 million.

“But we would not even be seeing this limited federal money were it not for the governor’s relentless pursuit of the President and Congress,” spokesman Sean Walsh said. “California is owed substantially more than this.”

Walsh added that “Californians will not be satisfied until the federal government starts shutting off the flow of illegal immigrants coming across the border because otherwise the incarceration problem will not be solved.”

A spokesman for California Treasurer Kathleen Brown, who is running against Wilson for governor, called the money an “important down payment in meeting the federal government’s obligation.”

Justice Department officials acknowledged that the initial $33.4 million for California will only defray a small part of the prison costs but noted that a recent White House-commissioned study placed California’s costs at $368 million a year--substantially less than the figure cited by Wilson.

However, that report by the respected Urban Institute, a Washington think tank with immigration expertise, added that California incurs significant related costs as well, including $1.28 billion annually to educate the children of illegal immigrants and up to $166 million in emergency Medicaid services for illegal immigrants.

Aside from California, New York initially will receive $4.1 million; Texas, $2.1 million; Florida, $1.1 million; Arizona, $991,900; New Jersey, $600,600, and Illinois, $564,200.

Reno told reporters that the federal grants “are not meant to settle any lawsuits” that have been filed by California or other states to force the government to pay its share of costs.

“These grants are meant instead to represent the first step on a down payment for what we believe is our fair share of the costs,” Reno said, although she did not specify what the Administration believes its fair share should be. The department also will work with state officials on deporting some immigrant prisoners, she said. But Reno noted that deportation in the U.S. Southwest “may not be as helpful” because illegal aliens often cross the border again.

In a related matter, Associate Atty. Gen. John R. Schmidt said that money for hiring more local police officers will start flowing to California and other states next week. Schmidt said the department will start distributing the first $200 million and “California will receive a hefty share.”

The recently approved anti-crime legislation provides for hiring 100,000 more local police officers over six years starting Oct. 1, 1995, but Schmidt said the first disbursements will be taken from previously appropriated funds from other bills “to get the program off to a running start.”

Los Angeles Mayor Richard Riordan has said that the funds, on a matching basis, will help him accomplish his goal of hiring 4,000 more police officers over the next five years, perhaps doing so sooner than anticipated.

Rep. Jack Brooks (D-Tex.), chairman of the House Judiciary Committee, said funds for California and his own state for incarcerated illegal immigrants “are long overdue.” He joined Reno at her news briefing as a key legislator who helped get the money appropriated.

“The states have no power to enforce federal immigration policy and yet they’re left with the burden of costs,” Brooks said. “For the first time, this program is turning promises into cash.”

Sen. Barbara Boxer (D-Calif.), who also appeared with Reno, said the money represents “a significant first step for the federal government in taking responsibility for its own policy.”

California Rep. Anthony C. Beilenson (D-Woodland Hills) also commended the Justice Department’s action.

“I cannot overemphasize the importance of this to California, where there are between 23,000 and 35,000 undocumented aliens incarcerated in state prisons,” Beilenson said.