ORANGE COUNTY PERSPECTIVE : Amid Financial Crisis, a Lucky Break

The attitude of Sacramento toward the Orange County bankruptcy has been a mixed bag. After all the tentative and even hostile initial responses, it was encouraging to learn recently that the state Department of Social Services will continue to provide some money the county well might have lost through its staff reductions. The retained revenue, about $6.2 million, will help the county avert some of the worst expected effects on programs for abused children and other human services.

Even this, however, is not so much an offer of help as a lucky benefit of the budgeting process. Orange County is going to reduce staff, which technically could have meant a loss in overhead money granted on a per-worker basis from the state. Instead of taking back about $6.2 million, the state will let the county keep the money, but hastens to add it would have done so even if Orange County was reducing staff for some reason other than the bankruptcy. Be thankful for small blessings.

The county could have lost nearly a third of the $19 million in matching funds the county would have given up by cutting $4.2 million from its Social Services Agency. The retained funding will foster compliance with state regulations for investigating child abuse and neglect and welfare fraud. However, there is still a way to go. Larry Leaman, the agency’s director, warns that the county will be substantially underfunded in the food stamp and AFDC programs.

In the best of all possible worlds, there would have been the restoration of cuts sought by Supervisor William G. Steiner, former director of the Orangewood Children’s Home. But in view of county Chief Executive Officer William J. Popejoy’s recommendation against such a restoration at the local level, the agreement by the state at least will go a way toward cushioning the impact of the cuts.

It is hard to argue with the larger political point of Steiner that if Sacramento wants the county to comply with mandates, it must help in the bankruptcy. And now, if only we can get cooperation from the state on a larger range of assistance issues.

There have been some important discussions between the county and Sacramento, but it is time to stop foot-dragging. Both Gov. Pete Wilson and the Legislature must work together and acknowledge that Orange County’s political leadership at least has indicated a willingness to take necessary painful measures to help itself.

Now it is time for the state to do what it can through loan guarantees or other forms of assistance.