Legislators Vow Last-Gasp Push to Bail Out County

With time running out for the Legislature to act, Los Angeles-area lawmakers pledged Wednesday to make a final push to prevent the collapse of the county’s public health system--despite encountering resistance from the county they are trying to help.

At a meeting this week with Los Angeles County officials, legislators laid out a financial rescue plan that would inject $123 million into the county treasury this year and $75 million annually for the next four years.

But they said that they again were encountering opposition from Los Angeles County officials--described by one legislator as “their own worst enemy”--and from the Metropolitan Transportation Authority, another key player in a revised bailout proposal.

The lawmakers said they were trying to avoid the pitfalls that led to failed attempts last month to enact legislation allowing a shift in MTA funds to pay for health services in Los Angeles County and a similar maneuver using transit funds to alleviate bankruptcy pressures in Orange County.

Little more than a week before the Legislature recesses for the year, Los Angeles lawmakers described a three-cornered fight involving themselves, county government officials and the MTA. The disagreement, they said, was preventing creation of a united front in attempts to secure financial relief.

Proponents of financial assistance admitted that, with the county officials divided, it would be difficult to gather support for bailout legislation in Sacramento.

Lawmakers have until Sept. 15 to secure passage of legislation benefiting the two counties. Bailout bills must receive the approval of Gov. Pete Wilson, who vetoed the last bill calling for a shift of Los Angeles and Orange County transit funds.

Wilson’s press secretary, Paul Kranhold, said the governor would favor the new funding proposal, at least in part, but his approval would be “contingent on L. A.

Democrats approving the remaining trailer bills” left over from the 1995-96 state budget debates. Many of those bills were rejected by Democrats, including measures to reduce general assistance payments to the poor and eliminate prenatal care for illegal immigrants.

Despite the difficulties, Los Angeles legislators said they will team up with Orange County colleagues and push for a joint bailout plan.

The plan contains these elements:

* In Los Angeles County, a one-time $48-million transfer of MTA funds to the county--an amount the MTA offered during earlier negotiations--plus $75 million a year for five years. As a partial pay-back, the county would transfer 10% of its gas tax revenues used for road repairs to the MTA for 20 years.

* In Orange County, the recovery package features a tax shift plan similar to that proposed for Los Angeles County. The county, which suffered $1.7 billion in investment losses last year and declared bankruptcy, wants to shift $38 million a year in transit funds for 15 years from the county transportation agency. In exchange, the county would give the transportation agency $23 million annually in tax money that now goes for road construction.

Democratic Assembly members and state Sen. Richard G. Polanco (D-Los Angeles), who were at the meeting with county officials Tuesday, said they were discouraged by the reception their latest rescue plan received and especially by the response of Los Angeles County Chief Administrative Officer Sally Reed.

Her objections centered on the part of the plan that would divert revenues raised from gas taxes for other uses such as health care.

Assemblyman Richard Katz (D-Sylmar) called Reed’s attitude “very disappointing. It proves [to opponents] that the county is as screwed up as everybody thinks it is, and they are their own worst enemy.”

She said helping to maintain the county’s health care system is a federal and state responsibility. She said diverting gas tax money to pay for health services is not the kind of solution that will serve Los Angeles County well.

“I understand that the Legislature is trying to help us. I appreciate that,” she said.

MTA Chief Executive Officer Franklin E. White said the agency’s board will hold a special meeting this morning to discuss the latest legislative proposals. But he said the plan would cost the MTA $200 million and would have a “powerful impact” on the agency’s transportation programs.

State lawmakers have come to the county’s aid in one small measure this week, approving a bill Tuesday by state Sen. Hilda Solis (D-El Monte) that would provide the county’s shredded health services system with $13 million to $15 million in federal health funds.

Sandra Davis, the county’s assistant chief administrative officer, said the county needs Wilson to approve the legislation, especially because the money already is included in the annual budget passed last month. “If the governor doesn’t sign it, we have another $11-million hole,” Davis said.

Vanzi reported from Sacramento and Rabin from Los Angeles. Staff writers Eric Bailey in Sacramento and Josh Meyer in Los Angeles also contributed.