Human Relations Panel Is Granted County Funding : Budget: The commission wins praise during hearings, and the Board of Supervisors agrees that its efforts against discrimination and intolerance are still needed.

Following emotional testimony about racism in Orange County, the Board of Supervisors agreed Tuesday to provide funding that was in doubt for a commission dedicated to fighting discrimination and ethnic intolerance.

The second of three days of county budget hearings focused on social service programs shrunken by millions of dollars in budget cuts. But some of the most fervent public comments involved a $106,000 funding recommendation for the Orange County Human Relations Commission, which monitors race relations and works closely with law enforcement.

African American Ted Heisser told the board about finding a burning cross outside his home, and how much faith he placed in the commission. Garden Grove Councilman Ho Chung also recalled painful brush es with racism and spoke of the commission’s good work.

Rusty Kennedy, head of the commission, said that the funding allotment represented a reduction of almost 40% from last year’s level but that he was still pleased with the board’s support, especially in light of the county’s bankruptcy.

“We feel real good today,” Kennedy said after the hearing at which he heard his work praised repeatedly. “These are hard times for the county.”

But future funding for the commission remains in doubt. Supervisor Jim Silva questioned whether the commission should rely solely on the county for government monetary support.

“I agree that it’s a very important commission. But I think that each city in Orange County that benefits from this should help with the costs,” Silva said. “I do feel it should not be funded from the general fund.”

Silva noted that money for the commission comes from a different funding source than, for example, a regional office providing veterans’ services.

Veterans turned out in full force Tuesday to protest cuts and were told they would have to make do with roughly $151,000--a sum the veterans said they are grateful for, but feared was so low it could cause them to lose precious matching state funds.

Next week, the supervisors are scheduled to formally adopt a $275-million 1995-96 general fund budget that reflects a 41% reduction in spending from pre-bankruptcy days.

The lengthy board discussions over appropriations less than $200,000, such as those for the Human Relations Commission and the veterans, underscore the tightness of the county budget.

The reductions of $100,000 or less were in stark contrast to painful cuts for health, community and social services--the safety net for the county’s impoverished children and adults. And the heads of the social welfare agencies hardly put up a fight against the inevitable.

The Health Care Agency, for example, is losing $12 million in county funds, nearly half of it affecting mental health services, according to Ronald R. Diluigi, agency assistant director.

The cuts are worsened by an additional $1.9-million funding loss stemming from the termination of a state program for alcohol and drug rehabilitation. Several recovering addicts turned out at Tuesday’s meeting to protest the cuts and demand that the county find a way to make up the loss.

An 11-year Army veteran, Edward Riley, 32, of Santa Ana, said that a state-funded program helped turn his life around but that it came too late. He said he is now HIV-positive, most likely from drug use, and fighting for his life. He asked the board where its priorities lay.

“It really hurts me you people are willing to build jails and not help out another individual,” said Riley, who drew applause from the audience. “Let’s operate from the heart, not . . . the dollar bill.”

The Social Services Agency, which helps provide financial assistance and employment to the indigent, has also taken a devastating hit. Its budget, which also relies on state and federal funding, has been slashed from $213.2 million to $170 million, which triggered more than 880 layoffs earlier in the year.

The county is cutting its portion of social service funding by $19 million, which in turn has caused the county to lose roughly $25 million in state and federal matching funds, said Social Services Director Larry Leaman.

The deep cuts have already been causing problems of compliance with guidelines for processing welfare requests within a certain period of time, Leaman said, and complaints are rising from clients who can’t reach harried caseworkers.