Board Today Will Debate Calling Vote on Sales Tax Hike : Recovery: Popejoy calls on supervisors to seek support for ballot measure to raise rate to 8.25%.

By MATT LAIT

March 21, 1995 12 AM PT

TIMES STAFF WRITER

SANTA ANA —

County supervisors will meet today to debate one of the most politically prickly questions they have yet faced in their battle to work the county out of bankruptcy: whether to put a controversial half-cent sales tax initiative before the voters in June.

County Chief Executive Officer William J. Popejoy met privately with supervisors Monday seeking support for the initiative, which would require a special election that would cost an estimated $800,000. The initiative would be known as Measure R.

So far, Supervisors Marian Bergeson and William G. Steiner have expressed a willingness to let the voters decide the issue. Two more board members will need to approve the proposal before a special election can be held June 27.

Popejoy met individually with the supervisors seeking the vote on whether the sales tax should be increased from 7.75% to 8.25% for a 10-year period.

Supervisors Jim Silva, Gaddi H. Vasquez and Roger R. Stanton did not respond to requests for comment.

“We’re having a reality check,” said Bergeson about her discussion with Popejoy. “Without some revenue stream, the consequences for the county are dire.”

Popejoy proposed the tax increase last week, saying the county had exhausted all other options to pull out of the Dec. 6 bankruptcy. He said layoffs, budget cuts, privatization and asset sales are not enough to help the county recover from its financial debacle.

Popejoy said the county must raise the tax if it is to pay off more than $1 billion in county bond debt due by Aug. 10, and fully repay the nearly 200 cities, school districts and special districts that, together with the county, lost nearly $1.7 billion in the county’s failed investment pool.

County officials estimate that a half-cent increase in the sales tax would raise $130 million annually, which could be used to finance about $700 million in new borrowing.

The sales tax proposal will be formally introduced to the supervisors today for a first reading and must be approved by a board majority to qualify for a final reading next Tuesday. At that time, four of the five supervisors must approve it if the proposal is to be placed on the ballot.

County officials said the costs of holding a special, countywide election could top $800,000. But the costs of not holding it would be even greater, Steiner said.

“A lot more is riding on the election than $800,000,” Steiner said. “It’s whether the concept of full faith and credit in government really means something.”

As Popejoy visited the supervisors, other county officials Monday were busy trying to figure out how to reinstate more than $10 million in programs that had been cut from next year’s proposed budget.

After three days of budget hearings last week, supervisors said they were concerned that some proposed reductions went too far. Among the programs that board members wanted restored were special overtime pay for sheriff’s deputies, a juvenile detention center and about $4 million in social service programs.

Steiner said some of the cuts didn’t make sense.

For example, he said, restoring $4.2 million to the Social Services Agency would trigger the reinstatement of another $19 million in state and federal matching funds--money that would be used to prevent any layoffs in the Children’s Services Department.

Under Popejoy’s proposed budget, the department was directed to cut $18.4 million, which required the layoffs of 175 social workers in children’s services and an unspecified number of other staff members.

But social services officials told the Board of Supervisors last week that if the proposed cuts were implemented, the remaining social workers would carry such heavy caseloads that they would not be able to meet state mandates for investigating reports of neglect and abuse. The county would become legally liable for failing to meet the mandates and leave itself vulnerable to countless lawsuits, officials said.

A final vote on the 1995-96 county budget has been scheduled for March 30.

In another development Monday, county officials said they are prepared to go forward with an $82-million law enforcement communications contract, despite the bankruptcy.

The county’s proposed contract with Motorola for the 800-megahertz system had been in jeopardy because the financial collapse affected the county’s ability to finance the project.

County and city officials have proposed establishing a “joint powers authority” to help finance the system. Under the proposal, which will be brought before the board today, the cities would finance the first two years of the contract while the county recovered from bankruptcy.

The county would transfer or lease existing radio equipment, tower structures, buildings and land to the authority to support the system.

An official from Ericsson GE Mobil Communications, which lost the contract to Motorola, said Monday that the system should be put out for new bids because of changes in the system caused by the bankruptcy. The company has alleged that the original bidding process was flawed.

Times staff writer Lisa Richardson contributed to this report.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Price of Programs

County officials are calculating how to pay for more than $11 million in programs that supervisors want restored in next year’s budget. A look at the programs officials want to keep and how much money they would take from the county general fund. Amounts in thousands:

Department: Probation

Problem: Keep youth detention center open

Net County Cost: $1,784

Department: Probation

Problem: Continue work furlough program

Net County Cost: $1,851

Department: Sheriff-Coroner

Problem: Continue special overtime pay

Net County Cost: $2,490

Department: Environmental Management

Problem: Keep paid Planning Commission

Net County Cost: $60