ORANGE COUNTY IN BANKRUPTCY : BOND TICKER : Airline Industry Group Vows to Fight Airport Sale

An airline industry leader wrote to Orange County Chief Executive Officer William J. Popejoy and the Board of Supervisors this week to express adamant opposition to the proposed sale of John Wayne Airport.

Popejoy said earlier this week that he wants potential airport buyers to submit proposals explaining how they would leap the financial and legal hurdles involved.

But in her letter, Carol Hallett, president of the Air Transport Assn., promised “stiff legal and administrative challenges” from the airline industry if such a deal progresses. The Air Transport Assn. represents airlines providing virtually all cargo and passenger service in the United States.

Hallett, a former GOP leader in the Assembly and head of the Customs Service under President George Bush, noted that federal laws prevent airport revenue and the proceeds from airport sales from being used for purposes other than airports. Popejoy has suggested that the profits could help bail out the bankrupt county.

Bill Would Let Schools Bail Themselves Out

A bill that would help Orange County schools finance their operations is headed for the Assembly floor after a key committee gave its approval this week.

The Assembly Appropriations Committee voted 16 to 1 Wednesday to approve the measure by Assemblywoman Doris Allen (R-Cypress). It would allow school districts in the county to sell so-called “certificates of participation” to help pay their schools’ operational costs for up to a year. California school districts are currently barred from using them.

Certificates of participation are a type of long-term bond frequently used by cities to generate funds.

Erstwhile Opponents Agree on Parcel Tax

Political opposites Hugh Hewitt and Mark P. Petracca were back on cable television in Irvine on Tuesday night, live from the Irvine Unified School District board meeting, where they urged trustees to place a parcel tax on the ballot.

Hewitt, conservative co-host of public television’s “Life & Times,” and Petracca, a liberal UC Irvine political scientist, are trying to persuade Irvine voters to approve a parcel tax to benefit the school district, which has been hit hard by the county financial crisis.

In their second appearance before the board, Hewitt and Petracca made an appeal to voters’ wallets.

“Educational quality can be empirically linked to property values, economic development and public safety,” Petracca said.

The school board approved a proposal that is expected to lead to a parcel tax election in September.

At Hewitt and Petracca’s urging, the board took no action on a resolution in support of the county’s proposed half-cent sales tax.

Trusteeship Not Tough Call for Supervisors

It’s not like they need the encouragement, but County Supervisor Marian Bergeson sent a letter to board colleagues this week urging them to formally oppose a state Senate bill that would throw the bankrupt county into a trusteeship to handle all the county’s financial matters. The board is expected to vote Tuesday.

The bill was authored by Sens. Lucy Killea (I-San Diego) and Quentin L. Kopp (I-San Francisco) and passed the Senate Local Government Committee on March 29. It will soon be heard in the state Senate Appropriations Committee.

Compiled by Shelby Grad, with Rene Lynch, Eric Bailey and Jodi Wilgoren.