Council, School Leaders Hit Divide on Measure R : Survey: With a month to go, most city officials are opposed or undecided while district officials favor tax hike.

Elected leaders throughout Orange County remain largely opposed to a proposed half-cent increase in the sales tax despite repeated pleas by key county officials to support Measure R as a route out of bankruptcy.

Slightly more than a third of Orange County’s political leaders support Measure R but 44% are opposed with a month to go before voters decide, according to a Times survey.

Nineteen percent of county, school and city elected leaders remain undecided--yet to be convinced that a sales tax is necessary to overcome a $1.7-billion investment fund loss that drove the county into bankruptcy.

There is a sharp division, however, between the views of school leaders and those of city council members. School leaders favor Measure R by 54% to 27%, while elected city officials are opposed by 63% to 18%.

The Times attempted to reach all elected county, school and city officials. Out of a potential 334 officials, The Times was able to survey 283. Of those not surveyed, 15 declined to participate and the rest could not be reached.

City and school leaders opposed to Measure R believe that the county has not done enough to raise money in other ways before resorting to the sales tax, which goes before voters June 27. Some say they’re philosophically opposed to new taxes, while others call for more budget cuts and object to the fairness of being asked to pay for others’ mistakes.

“I see Measure R as a status quo tax. Until the county does some real restructuring, budget cutting, privatizing, the selling of assets . . . I would not support the tax increase,” Irvine Mayor Michael Ward said.

“I wouldn’t trust them with my tax money or much else,” Laguna Niguel Councilwoman Janet Godfrey said. “The county needs to explore other ways to solve this problem.”

Supporters are motivated mostly by a desire to protect schools and law enforcement, with many arguing that a tax increase is the only way to raise enough money. Many also contend the extra tax revenue is needed to avoid defaulting on debts.

“I’m anti-tax. But I feel this is the only thing the county can do to keep itself solvent,” said Seal Beach Mayor George Brown.

The survey, conducted over the past two weeks, tapped a mood of anger and frustration among elected officials who find themselves caught up in the financial debacle. Political leaders are particularly sour on the Orange County Board of Supervisors.

The survey found that tax opponents and supporters differ sharply on several key points, such as the performance of county chief executive William J. Popejoy, architect of the tax and its biggest supporter.

Among the findings of the survey:

* An overwhelming three-fourths of city and school officials characterize the job of the supervisors in handling the unprecedented financial crisis as “only fair” or “poor.” The board won’t find solace even among fellow Republicans on city and school boards: 77% gave supervisors the same low rating.

* Political affiliation is one factor distinguishing Measure R supporters from opponents. Democrats support the tax by a margin of 56% to 16% while Republicans oppose the tax by 54% to 27%.

* About 87% of elected officials who support Measure R said Popejoy is doing an excellent or good job, compared with just 43% of Measure R foes who rate his performance that highly.

* About 85% of leaders who oppose Measure R describe the county’s efforts to cut costs as “only fair” or “poor,” compared with about half of Measure R backers. Only 6% of tax foes think the county’s cost-cutting efforts have been “excellent” or “good,” compared with 37% of Measure R proponents.

* Officials are also unimpressed with the county’s efforts to privatize government services. About 65% of political leaders surveyed rated privatization efforts as “only fair” or “poor,” compared with 8.6% who described them as “excellent” or “good.” About 80% of Measure R opponents labeled privatization attempts as “only fair” or “good.”

* Nearly 80% of city and school officials agree that the investment fund losses will hurt the quality of life in Orange County “a lot” or “somewhat.”

* School leaders are pessimistic about the impact of the investment losses on the quality of education, with 24% saying they will hurt a lot and 52% saying they will hurt somewhat.

*

The survey is the second in as many months to indicate Measure R may be destined for a trouncing at the ballot box. A Times Orange County Poll of voters taken last month found 57% opposing it and 36% in support, with 7% undecided.

Popejoy, Sheriff Brad Gates, some supervisors and other county officials had called on school board and city council members to exercise leadership by endorsing the tax as the best way to get full reimbursement from the county for their investment losses, but those exhortations appear to be falling flat.

Observers say the views of elected officials could be especially critical in light of anticipated low voter turnout at the single-issue election and the complex nature of the county’s fiscal crisis. Voters may view local leaders as being in the best position to evaluate the need for a tax, they say.

“If Orange County voters hear their city and school officials are lining up against the tax, it makes it much more difficult to support an Orange County tax measure,” said Mark Baldassare, a UC Irvine professor of urban planning who conducted the Times poll of Orange County voters. “Orange County voters have more confidence in their city officials than their county officials.”

Despite their general opposition to the sales tax measure, more than 88% of the county’s elected leaders believe the county has an obligation to repay its bondholders in full.

Yet county chief executive Popejoy predicts a fiscal “meltdown” if the tax increase does not pass, including defaulting on bond debt and a string of school and city bankruptcies and deeper slashes in county services.

If Measure R fails, residents can expect already sinking property values to plummet further, Popejoy said. Lenders would be wary of assisting the county in the future--and would only do so at a much higher cost to taxpayers. A failure also would unleash costly legal action on behalf of bondholders, cities and schools who would sue to get their money back, he said.

“All of these are taxes in a way. The difference with this tax, Measure R, is that we get to vote on it and it is ultimately a less expensive tax,” Popejoy said.

Popejoy expressed dismay over complaints that the county has not done enough already. The county’s general operating budget has been slashed by 41%, hundreds of employees have been laid off and the county goes to auction next month with government assets, he noted.

The county plans to place more than a dozen properties worth $30 million on the block in June in the first phase of a long-range plan to sell off assets. The county plans to eventually sell 30 buildings, vacant parcels and parking lots worth a total of $145 million.

But opponents and the undecided insist there are acceptable alternatives to the tax increase, such as privatization, additional asset sales and more cost-cutting.

“In order [to support] Measure R, I’d have to be convinced that every other option to deal with the problem has been exhausted,” Huntington Beach Councilman David Sullivan said.

“There needs to be another option,” Irvine Councilwoman Paula Werner said.

The county spiraled into bankruptcy after longtime Treasurer-Tax Collector Robert L. Citron gambled away nearly $1.7 billion on risky financial maneuvers while managing a $7-billion investment pool.

Citron, who was forced out of office days after the bankruptcy, has pleaded guilty to six felony counts of misappropriating county funds, falsifying records and deceiving participants in the county investment pool. He faces sentencing, and his top aide, Matthew Raabe, is facing identical charges.

The loss was felt by nearly 200 governmental entities, including every Orange County school district and most cities that had money in the pool. Entities with money in the pool received an average 77% on the dollar but expect to be paid back in full.

Measure R, also known as the Bankruptcy Recovery Tax, would raise the sales tax from 7.75% to 8.25%, the same rate as Los Angeles County’s. It is expected to raise $130 million a year over its 10-year life, against which the county can borrow to help meet financial obligations.

Those obligations include paying back the cities and schools.

The survey shows that those who need revenue from the tax the most were the most likely to endorse it. More than half of the elected leaders of schools--some of which teeter on the brink of bankruptcy if they do not recoup their losses--support Measure R while less than a fifth of city officials back the tax.

Of the eight elected county officials surveyed, six are in favor of the tax and two are opposed.

But leaders of cities and schools that are owed money balk at the suggestion that they should be fully in support of the levy.

“We are asking people to repay themselves with a tax,” Laguna Niguel Councilwoman Patricia C. Bates said. “It’s difficult to ask us to do that.”

*

Measure R supporters said city and school leaders who are in the best position to understand the dire financial situation should be among those rallying in support of the tax.

Opponents were characterized as being irresponsible and more interested in saving their political skins than preserving Orange County’s cherished quality of life.

“The easy way out is to vote no. In my view personally, it is an irresponsible position,” said Sheriff Brad Gates, who is campaigning hard in favor of Measure R. “I think it takes courageous leaders in elected roles to encourage people to accept an idea that is unpopular, but it is the right decision to make for the civic responsibility and future of this county.”

Popejoy said he was “terribly disappointed” by the results but warned that school and city leaders who oppose the tax will be held accountable for their decision and will have no one to blame but themselves if they are not repaid.

“I think they’re doing a disservice to their communities,” said Popejoy, who cited estimates that Measure R will cost each Orange County resident about $50 a year. “If Measure R fails and they are against Measure R, we expect no complaints if [cities and school districts] aren’t paid. Because they won’t be. They just won’t. The money isn’t there.”

Supervisor Marian Bergeson argued that many opponents have staked their positions solely out of political fear.

“I can’t tell you how many elected leaders have pulled me aside and said, ‘Well, of course the tax is needed, but you know politically I can’t support it,’ ” Bergeson said. “I just shake my head. They’re all looking at that next campaign [opponent’s] brochure that says they raised taxes.”

City and school leaders say the county is solely responsible for the fiscal mess and is now trying to make residents pay for its own mistakes.

Their voices seethe with bitterness and a heightened sense of distrust when it comes to Orange County government.

Cypress Councilwoman Gail H. Kerry said the supervisors should step down for the good of the county.

“If the [supervisors] care that much about the county, they will resign,” she said. “People don’t trust what’s going on out there.”

“The supervisors get an ‘F,’ ” is the way Laguna Hills Councilwoman Cindy Greengold put it. “If you go into bankruptcy, you’ve failed.”

Dana Point Councilwoman Karen Lloreda said she is not even sure she trusts the supervisors would use the additional tax revenue to pay back money the county owes.

“I think I could be more supportive of a tax increase if I could see more clearly that the supervisors are cutting costs as much as they can and that the tax would be used to address the debt,” she said.

Newport Beach Mayor John W. Hedges said he believes the vote on Measure R will be nothing less than a message, loud and clear, from disgruntled voters.

“Measure R is going to turn on the credibility of the supervisors’ efforts at righting county government,” he said, adding that no one is convinced that will be done any time soon.

“At this point, people are going to vote against Measure R for two reasons: No. 1, quite simply, it’s going to be a vote against the supervisors. No. 2, they’re going to vote to punish the county for things it either has done or has not done in the past.”

Contributing to this story were Times staff writers Mark Landsbaum, Matt Lait and Ching-Ching Ni and Times correspondents Jeff Bean, Debra Cano, Alan Eyerly, Russ Loar, Jon Nalick and Lesley Wright.

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Leaders Survey

The Times Orange County surveyed elected city, school district and county leaders to determine how they will vote on Measure R, the ballot measure to increase the sales tax one-half cent that will be voted on June 27. The survey, conducted by telephone May 10-26, reached 283 of 348 officials. Some were undecided or declined to state their view.

CITY COUNCILS

Anaheim Frank Feldhaus: no Tom Daly: undecided Lou Lopez: no Tom Tait: no Bob Zemel: no

Brea Lynn Daucher: yes Burnie Dunlap: undecided Glenn G. Parker: undecided Bev Perry: undecided Kathryn E. Wiser: undecided

Buena Park Donald L. Bone: no Arthur C. Brown:no Don R. Griffin: no Patsy Marshall: no Gerald N. Sigler: no

Costa Mesa Peter F. Buffa: undecided Joe Erickson: no Sandra L. Genis: no Mary Hornbuckle: yes Gary Monahan: no

Cypress Cecilia L. Age: no Walter K. Bowman: no Tom Carroll: no Mary Ann Jones: unavailable Gail H. Kerry: no

Dana Point Judy Curreri: yes Toni Gallagher: no Karen Lloredaun: decided Harold R. Kaufman: unavailable William L. Ossenmacher: no

Fountain Valley Guy Carrozzo: no John Collins: declined Laurann Cook: declined James D. Petrikin: no George B. Scott: no

Fullerton Don Bankhead: no Jan M. Flory: yes Peter Godfrey: no Chris Norby: no Julie Sa: unavailable

Garden Grove Bruce A. Broadwater: no Ho Chung: no Bob Dinsen: no Tony Ingegneri: no Mark Leyes: no

Huntington Beach Ralph Bauer: undecided Shirley S. Dettloff: yes Dave Garofalo: no Peter Green: no Tom Harman: no Victor Leipzig: undecided David Sullivan: undecided

Irvine Barry J. Hammond: no Christina L. Shea: undecided Greg Smith: no Michael Ward: no Paula Werner: undecided

La Habra Steven C. Anderson: no David M. Cheverton: no James Flora: no Juan M. Garcia: undecidedDorothy May Rush: undecided

La Palma Kenneth Blake: yes Charlene Hatakeyama: yes Wally D. Linn: no Eva G. Miner: yes Duane F. Schuster: undecided

Laguna Beach Wayne J. Baglin: no Kathleen Blackburn: undecided Steve Dicterow: unavailable Paul Freeman: yes Wayne L. Peterson: yes

Laguna Hills Randal J. Bressette: no Melody Carruth: no Cindy Greengold: no Joel T. Lautenschleger: no R. Craig Scott: declined

Laguna Niguel Patricia C. Bates: no Janet Godfrey: no Mark Goodman: no Eddie Rose: no Thomas W. Wilson: unavailable

Lake Forest Richard T. Dixon: no Peter Herzog: no Kathryn McCullough: unavailable Ann Van Haun: no Helen Wilson: undecided

Los Alamitos Ronald Bates: undecided Alice Jempsa: undecided Marilynn M. Poe: undecided Charles E. Sylvia: yes Robert P. Wahlstrom: yes

Mission Viejo Sherri M. Butterfield: no William S. Craycraft: no Joseph D. Lowe: unavailable Lawrence H. Smith: no Susan Withrow: no

Newport Beach John C. Cox Jr.: yes Janice A. Debay: yes Thomas C. Edwards: yes Norma Glover: no John W. Hedges: undecided Dennis D. O’Neil: declined Jean H. Watt: no

Orange Fred L. Barrera: no Joanne Coontz: no Mark Murphy: no Dan Slater: no Mike Spurgeon: no

Placentia Carol Downey: yes Norman Z. Eckenrode: yes John O. Tynes: undecided Michael L. Maertzweiler: no Maria Moreno: undecided

San Clemente Joseph Anderson: yes Patrick M. Ahle: no Steve Apodaca: yes Scott Diehl: unavailable Candace Haggard: yes

San Juan Capistrano Collene Campbell: yes Wyatt T. Hart: no Gil Jones: no Carolyn Nash: yes David M. Swerdlin: no

Santa Ana Tony Espinoza: unavailable Thomas E. Lutz: undecided Patricia McGuigan: declined Lisa Mills: yes Ted R. Moreno: no Miguel A. Pulido Jr.: declined Robert L. Richardson: unavailable

Seal Beach George Brown: yes William J. Doane: no Gwen Forsythe: no Marilyn Bruce Hastings: no Frank Laszlo: no

Stanton Brian Donahue: no Harry Dotson: undecided William C. Estrada: unavailable Sal Sapien: undecided David John Shawver: no Tustin Michael J. Doyle: no Jeffery M. Thomas: no Jim Potts: unavailable Thomas R. Saltarelli: undecided Tracy Worley: no

Villa Park Joseph S. Barsa: no Bob Bell: declined Barry L. Denes: no John Frackelton: no Bob Patchin: no

Westminster Charmayne S. Bohman: unavailable Frank Fry Jr.: undecided Tony Lam: no Margie L. Rice: no Charles V. Smith: unavailable

Yorba Linda John M. Gullixson: no Barbara Kiley: no Mark Schwing: no Daniel T. Welch: no Gene Wisner: unavailable

COUNTY Supervisor Marian Bergeson: yes Supervisor Jim Silva: no Supervisor Roger R. Stanton: declined Supervisor William G. Steiner: yes Supervisor Gaddi H. Vasquez: yes Clerk-Recorder Gary Granville: yes Treasurer John M. W. Moorlach: no Sheriff Brad Gates: yes District Attorney Michael R. Capizzi: yes Assessor Bradley L. Jacobs: unavailable Auditor-Controller Steve E. Lewis: unavailable Public Administrator William Baker: unavailable

SCHOOLS Anaheim City School District Jeanne Blackwell: yes Benny Hernandez: unavailable Todd E. Kaudy: yes Betty Patterson: yes Christoper B. Whorton: yes

Anaheim Union High School District Harald G. Martin: no R. A. (Molly) McGee: unavailable Joanne L. Stanton: undecided Robert Stewart: undecided L. E. (Slim) Terrell: undecided

Brea Olinda Unified School District Teresa Hampson: yes Kenneth A. Kegel: declined Bernie P. Kilcoyne: undecided Carol L. Norum: yes Barbara R. Paxton: undecided Susie D. Sokol: undecided Todd Spitzer: unavailable

Buena Park School District Lloyd G. Davis: no Barbara Fagins: unavailable Mary Fuhrman: yes B. Buck Levine: undecided Elizabeth Swift: unavailable

Capistrano Unified School District Sheila J. Benecke: yes Dorsey Brause: yes Marlene Draper: yes Peter J. Espinosa: yes Paul B. Haseman: yes Crystal Kochendorfer: yes Mildred Daley Pagelow: declined

Centralia School District John M. Alvis: yes Karen Blake: unavailable Jerry Buchanan: unavailable Robert Lindsay: yes Gloria Scanlon: unavailable

Coast Community College District Sherry L. Baum: declined Paul Berger: declined Walter G. Howald: yes Nancy A. Pollard: yes Armando R. Ruiz: unavailable

Cypress School District Ventura Cornejo Jr.: undecided Donna Erickson: undecided Ellen R. Friedmann: yes Donna McDougall: yes Edward K. Southfield: undecided

Fountain Valley School District Larry R. Crandall: no Catherine Hacker: unavailable Julie Hoxsie: yes Robert J. Sedlak: yes Barbara A. Vogel: yes

Fullerton Joint Union High School District Marilyn Buchi: undecided Bill Dunton: undecided Robert Hathaway: unavailable Barbara R. Kilponen: undecided Robert A. Singer: unavailable

Fullerton School District Karen Chavez: no Robert C. Fisler: yes Rosamaria Gomez-Amaro: yes Marjorie B. Pogue: yes Anthony M. Valla: unavailable

Garden Grove Unified School District Terry Cantrell: no Lynn Hamtil: yes Bob Harden: no Joyce T. Johnson: yes Kenneth H. Slimmer: yes

Huntington Beach City School District Shirley Carey: unavailable Brian F. Garland: unavailable Robert J. Mann: unavailable Catherine McGough: yes Brian E. Rechsteiner: yes

Huntington Beach Union High School District Bonnie Bruce: yes Bonnie Castrey: yes Barbara Johnson: yes Curt Jones: unavailable Michael S. Simons: yes

Irvine Unified School District Hank Adler: yes Tom Burnham: no Mary Ellen Hadley: undecided Michael B. Regele: undecided Margie Wakeham: yes

La Habra City School District Morrison M. Clements: yes Linda Navarro Edwards: unavailable Susan M. Hango: no Antonio Valle Jr.: no Nancy Zinberg: undecided

Laguna Beach Unified School District

Timothy Carlyle: undecided Karen Linden: yes Susan Mas: yes Kathryn A. Turner: yes Jan Vickers: yes

Los Alamitos Unified School District Donna Artukovic: yes Del Clark: yes Matthew Duggan: yes Kathi O’Brien: yes Virginia Wilson: yes

Magnolia School District Barbara Clendineng: unavailable Janel Hangartner: yes Ray Morales: yes Steve Staveley: yes Esther H. Wallace: yes Newport-Mesa Unified School District Jim de Boom: yes Edward H. Decker: yes James M. Ferryman: undecided Martha Fluor: yes Judith A. Franco: no Wendy Leece: no Serene R. Stokes: yes

North Orange County Community College District Cynthia Coad: no Barbara G. Hammerman: unavailable Otto J. Lacayo: undecided Leonard L. Lahtinen: yes Nilane A. Lee: yes Chris Loumakis: no Barry J. Wishart: yes

Ocean View School District Carol Kanode: yes Charles Osterlund: no Tracy Pellman: undecided Nancy Stuever: unavailable Pam Walker: unavailable

Orange County Department of Education John F. Dean: yes Dean McCormick: undecided Sheila Meyers: unavailable Elizabeth Parker: yes Joan S. Primrose: unavailable Felix Rocha Jr.: no

Orange Unified School District Maureen Aschoff: no James Fearns: no Martin Jacobson: no Rick Ledesma: no Bill Lewis: no Max Reissmueller: no Robert H. Viviano: no

Placentia-Yorba Linda Unified School District Jerry Brakebill: undecided Cathy Ann Brooks: no Karin M. Freeman: declined Judy Miner: unavailable Craig Olson: unavailable

Rancho Santiago Community College District Brian E. Conley: yes Lawrence R. Labrado: undecided Charles W. (Pete) Maddox: no Michael Ortell: yes Shirley A. Ralston: no Enriqueta L. Ramos: yes Tom Saenz: no

Saddleback Community College District Steven J. Frogue: unavailable Joan J. Hueter: yes Teddi Lorch declined Marcia Milchiker: declined Lee Rhodes: unavailable Harriett S. Walther: yes John S. Williams: no

Saddleback Valley Unified School District Marcia L. Birch: yes Bobbee Cline: yes Dore J. Gilbert: yes Debbie Hughes: no Frank L. Ury: no

Santa Ana Unified School District Rosemarie Avila: no Robert W. Balen: yes Tom Chaffee: unavailable Sal Mendoza: no Audrey Yamagata-Noji: declined

Savanna School District Chris Brown: unavailable Edward Erdtsieck: no Gary Roger Fite: unavailable Patrick V. Ochoa: undecided Linda R. Weinstock: undecided

Tustin Unified School District Jonathan W. Abelove: no Jane Bauer: yes Todd Ferguson: undecided Merlin L. Henry Jr.: yes Gail Michelsen: undecided

Westminister School District Nancy L. Blumenthal: yes Lynn Covey: no Kathy Stirling Iverson: yes Sondra Rinker: no Michael J. Verrengia: no

Difference of Opinions

School district leaders support Measure R to a much greater extent than do city officials. They also give County Chief Executive Officer William J. Popejoy a higher job rating and view the investment pool losses as more injurious to education in the county: Measure R:

City leaders School leaders Yes 18% 54% No 63% 27% Don’t know 19% 19%

Popejoy Rating:

City leaders School leaders Excellent/good 51% 74% Fair/poor 42% 16% Don’t know 7% 10%

Investment Losses Hurt Education:

City leaders School leaders A lot/somewhat 52% 77% Not much/not at all 36% 21% Don’t know 12% 2%

Source: Times survey