ORANGE COUNTY IN BANKRUPTCY : Bergeson Comes Up With a ‘Plan B’--and Admits It’s ‘Terrible’ : Crisis: Proposal cuts workers’ benefits and pay, raises trash fees and threatens public safety. She says it drives home the severity of the situation.

Unveiling the first official alternative to a proposed half-cent sales tax to help the county out of its financial mess, Orange County Supervisor Marian Bergeson said her “Plan B” would pose a threat to public safety, drastically raise garbage fees and slash pay and benefits for county workers.

Even before critics had a chance to assail the plan, Bergeson said it was a “terrible” idea.

Bergeson said her proposal drives home the severity of the county’s fiscal crisis and only solidifies her belief that the passage of Measure R--the proposed sales tax increase--is crucial if residents want to keep public safety a priority and maintain the long-cherished quality of life in Orange County.

“I don’t like it much myself because it’s a terrible, terrible plan,” Bergeson said. “But there are no real options that are going to be acceptable. The situation is desperate. That’s why I’m supporting Measure R.”

Bergeson insisted her proposal was not a “scare tactic.”

“The public wants a Plan B, but you can’t solve the problems in a crisis situation like this without painful measures,” she said.

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Measure R, which goes before voters June 27, has been touted by County Chief Executive Officer William J. Popejoy as critical to the county’s recovery from the largest bankruptcy in U.S. municipal history. Popejoy has predicted financial “meltdown” if Measure R fails, including defaulting on bond debt and a takeover by state officials.

The sales tax proposal has been greeted unfavorably in conservative Orange County and three of the supervisors have complained about the lack of a “Plan B.” While some board members have put forth proposals to assist in bankruptcy recovery, only Bergeson--a board newcomer--has drafted such a comprehensive proposal.

Key elements of Bergeson’s 10-point plan:

* A 20% pay reduction for many county employees.

* Slashing the budgets of the district attorney’s office and the Sheriff’s Department by a total of nearly $20 million.

* Stripping sanitation, water and other special districts of county tax revenue, a move sure to drive up services fees.

Widespread criticism greeted the plan.

Law enforcement officials said pay cuts would further demoralize the county’s work force, and drive prosecutors and sheriff’s deputies to seek jobs elsewhere.

“I think it’s a plan that could get someone elected president of the United States,” Dist. Atty. Michael R. Capizzi said sarcastically. “It would solve the problem of crime. Every criminal in the country would flock to Orange County.”

John Brimmage, president of the Assn. of Orange County Deputy Sheriffs, said the plan “would be absolutely devastating.”

Union workers said it would leave some county employees hovering at the poverty level.

“Everything is being done on the backs of the workers,” said Bill Fogarty, executive secretary-treasurer of the Orange County Central Labor Council. “We’ve got folks making $19,000 to $22,000 a year. Cutting their pay by 20% would be devastating.”

Bergeson’s plan also would eliminate dental and life insurance and accidental death and dismemberment benefits for county employees; cancel the contracts of county lobbyists in Washington and Sacramento, and reduce the workers in the supervisors’ offices to one staff person and one secretary for each of the five districts.

Nearly all of Bergeson’s proposals would require the passage of urgent legislation, approval of a federal bankruptcy judge or the cooperation of employees’ unions--which raised questions whether the proposals can ever make it off paper.

The county declared bankruptcy Dec. 6 after risky financial maneuvers lost nearly $1.7 billion.

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Popejoy’s chief adviser, Paul Nussbaum, said many of the proposals could not be implemented in time to meet bond debt coming due this summer. Bergeson admits her plan does not rule out the possibility of default.

But according to Bergeson’s calculations, the package of proposals would provide a onetime windfall of $100 million, create a new revenue stream of $110 million annually, and allow the county to borrow up to $675 million to help make up the county’s losses.

Officials at sanitation districts balked at the possibility of raising fees on county households.

“This is just unacceptable,” said Ronald Cates, general manager of the Garden Grove Sanitation District, who said fees could rise nearly $54 a year per household under all the county recovery proposals being considered.

Anti-tax activist Carole Walters of Orange said the proposal is worse than Measure R because the residents cannot vote on it.

Bergeson said she drew up the proposal to give the public the “Plan B” for which many have been clamoring.

Board colleagues reacted to the proposal with caution but also applauded her efforts to tackle a difficult situation.

“I think what we have to do is sit down and evaluate the viability of these proposals,” said Supervisor Jim Silva, who is opposed to the sales tax and has also been working on bankruptcy alternatives. “I think we have to look at all options.”

Times correspondent Shelby Grad contributed to this report.