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Popejoy Points Way Back From the Brink : It’s Up to Residents to Implement His Well-Crafted Plan

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Orange County has come a long way in recent months from the earliest despair over the bankruptcy. If the right things fall into place, a plan of recovery can be implemented. It is fair to say that we might not be there without the efforts of the county’s chief executive officer, William J. Popejoy, who, without pay, has assumed a largely thankless task.

Not long into the job he began early in February, Popejoy said he regarded the county as if it were a company answerable to a shareholder, in this case, a constituency of citizens.

Government, of course, is different in a number of ways from private industry, and along the way there has been some understandable heartache and grumbling. Overall, however, it has been a remarkable ride as the former CEO of American Savings & Loan has worked methodically to rebuild the county financially.

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By the end of March, Popejoy had put together a comprehensive plan for recovery. In doing this, he signaled there was a plan to get out of the woods, an important signal for Wall Street, for Sacramento, for audiences within county government and for the most important group of all, the citizens of Orange County. One need only step back and contemplate the alternative consequences to acting decisively.

By first seeking the ouster of a number of top officials associated with the bankruptcy, Popejoy showed that he was intent upon starting freshly. He then urged the county to seek short-term loans backed by the state, and made it known that harsh cuts in personnel and services would not be enough. The CEO’s appeal for state assistance, balanced with a resolve to get a grip on the problem locally, has made a compelling case to Sacramento that should be taken seriously by legislators.

Shortly thereafter came the clash with Jim Silva over the supervisor’s refusal up to that point to make additional cuts in his office budget. It was a clear indication that the CEO was willing to go to the mat and that he understood the importance of perceived fairness in absorbing the pain.

Then came calls for more than 1,000 county workers to be laid off, and the elimination of many more positions, a list of properties to be put up for sale and the offering of another list of county services that could be turned over to the private sector.

Popejoy also insisted that the county should not default on its loans, a strong signal to Wall Street, to bondholders and to business leaders.

Having done all this, the proposal for a half-cent sales tax increase for 10 years was floated. Popejoy’s uncompromising explanation of the consequences of inaction were a significant factor in last week’s decision by the Board of Supervisors to put the question to voters in June.

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Popejoy has explained clearly the size of the budget gap and urged realism. Opponents of a recovery plan now are in the position of lacking credibility without producing alternative numbers that add up. As recently as last week, he was asking for even more layoffs and deeper cuts to plug the fiscal gap.

All in all, Popejoy has gone a long way to point the county out of the dark tunnel of bankruptcy toward a brighter future. Whether the will exists to implement that plan is now a question for the citizens of Orange County.

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