ORANGE COUNTY IN BANKRUPTCY

In the aftermath of Measure R’s defeat at the polls, county leaders and others talk about what will happen next.

“This is a new era. This is a new day.”

Gaddi H. Vasquez, Board of Supervisors Chairman

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“They [county officials] can’t print money. On a private sector model, they default on the debt. That hasn’t happened for a general purpose government ever in history. We’re in uncharted waters, unfortunately. It’s a very serious situation.”

Thomas W. Hayes, Former State Treasurer

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“This whole debate is going to go to a different level. The rhetoric will be replaced by a realism. There will be significant prioritization of what we can and can’t do.”

William G. Steiner, Supervisor

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“We little people were just tired of paying for the big people’s demand for more profits. Well, we’re fighting back. Local government is learning that it works for all the people, not just the big people.”

Carole Walters, President of the Orange Taxpayers Assn.

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“With this sales tax defeat, Orange County is going to be shut out of the municipal bond market. It’s not going to be able to pay its notes this year and there is no visible way for them to pay them in 1996. It’s in default.”

Richard Larkin, A managing director with Standard & Poor’s Corp.

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“Everything needs to be on the table.”

Jim Silva, Supervisor

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“They [budget cuts] will be excruciating. . . . No knight in shining armor is going to come through and save Orange County.”

Marian Bergeson, Supervisor

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“I don’t at all see this as a vote against business. People simply said, ‘We think there’s a different way to do this.’ The voters said that restructuring of local government is critical, but that there are ways to do it without the taxing option.”

Wayne Wedin, Orange County Business Council Chairman

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“The county is demonstrating near-total disregard to the damage this will also inflict on the hard-won trust generally awarded to other municipal borrowers.”

Moody’s Investors Service

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“Measure R was a last resort, but it was put at the top of the list of things to do. Now what happens? We go back and retrace our steps.”

Roger R. Stanton, Supervisor