Popejoy Weighs In on Recovery Plans

* Recently you ran an editorial (“Executive Strength . . . Plus Cooperation,” May 24) which was somewhat critical of my handling of a proposal from J.P. Morgan. That proposal was first made to the county well before I became CEO and was turned down. When I joined the county, the proposal was submitted to me. I have great respect for J.P. Morgan and I reviewed their proposal. I sent it to our team of professionals for another examination. After consultation with J.P. Morgan, we decided that it had no merit.

The proposal was not a firm commitment. It contained many open-ended conditions and ceded financial control of the county. Most important, it failed to identify how the county could possibly repay the proposed borrowing.

The county then and now does not have additional revenue to repay a $2-billion borrowing. Even after cutting our budget 41% and placing all available assets for sale, the county barely has revenue to pay the $250 million in recovery notes promised to the schools and cities. We have no revenue to pay additional debt. The county has received many proposals which have been carefully reviewed and found to have no merit.

I believe my job is to help develop a feasible plan of recovery. We have put together a plan that has many components, the cornerstone of which is a half-cent sales tax (Measure R). The county has a financial hole of about $2 billion. Measure R will help make up over half of that deficit.

If Measure R fails, we will not, under current circumstances, be able to repay our obligations due this summer to the schools, cities, bond holders, vendors and other creditors.

We are constantly alert for ideas to help the county out of this terrible bankruptcy, Any new proposals, of merit, will be quickly brought to the Board of Supervisors.

WILLIAM J. POPEJOY

Chief executive officer

County of Orange

* If the wealthy can band together successfully to raise millions to pass Measure R, why don’t they just raise the funds directly for the county to be used for paying off the deficit and get it over with. The poor and struggling would appreciate it greatly!

JACK C. CASKEY

Anaheim

* Chief Executive Officer William J. Popejoy has my full endorsement and respect. We should believe that he can and will bring the Orange County bankruptcy to a close as early as he can.

The longer we wait for a miracle to happen, the longer the brokers, attorneys and others will prosper at our expense.

News accounts tell of brokers and investors predicting doomsday if we don’t repay 100% or refinance for another year at their profit. Investors and brokers took chances too; in a bankruptcy they need to settle for their allotted amounts, not 100% at taxpayers’ expense. Let us settle too and protect our jobs.

Every year that passes will escalate our costs. We hope Mr. Popejoy will stay in charge before this escalates into a county-state political football.

RALPH BLANCHARD

Laguna Hills