County Finances: Tide of Outrage : Disclosures of mismanagement in Los Angeles seem to be endless

Just what’s happening in Los Angeles County government? Barely a day passes without some new disclosure of outrageous fiscal mismanagement. As if the county’s $1.2-billion deficit were not crisis enough, now comes news of yet more red ink. How did things get so out of control?

Clearly, accountability lies with the Board of Supervisors and the officials it oversees. Take the case of Robert C. Gates, the outgoing director of the vast county Health Services Department. Last Friday he startled the board by revealing he had no comprehensive plan for how to close hospitals and treat the sick and injured if budget cuts made closures necessary. He also said the department’s deficit is actually $90 million more than the $655 million previously estimated. What’s $90 million here or there, right?

Needless to say, the board was furious. County officials say Gates’ abrupt announcement in May of his early retirement resulted from problems in his department. Soon afterward, the supervisors approved a sweetened retirement package for Gates that includes a $25,000 pay increase that boosted his monthly pension to $5,998. If the supervisors feel foolish now, they should.

Times staff writer Jeffrey L. Rabin reported on Sunday that the county has borrowed against most of its major assets, including the Hall of Administration, which is the county’s main headquarters, and the huge Criminal Courts Building, the site of the Simpson trial. In addition, almost all of the county buildings in the Los Angeles Civic Center have either been mortgaged or pledged as collateral. There is little left to borrow against or sell. This is close to robbing Peter to stiff Paul.

County costs for borrowing have soared. In the last six years, the annual cost of paying the interest on the county’s debt has grown faster than any major program, more than doubling, from $175 million to $382 million, in the just-ended fiscal year.

Where has all this borrowing left the county? Billions of dollars in debt. The level of mismanagement shocks even Sacramento, and that’s saying a lot.