Anticipating Needs, Not Just Reacting to Crises

It has been said that budgets are like microwave ovens--we all use them but few of us know how they actually work.

Last year, the news media were focused on the plight of local government, particularly the bankruptcy of Orange County and the near-collapse of Los Angeles County’s health care system. California’s 58 counties have been plagued for years, however, by a dysfunctional budget process that enables the state to confiscate local property taxes to balance the state budget without eliminating state mandates. The federal government exacerbates the problems by not paying for mandated programs and by refusing to enact tough laws dealing with illegal immigration. This has resulted in counties being caught in a vise between mandates and limited resources.

In Los Angeles County, two-thirds of our $10-billion budget consists of pass-throughs of state and federal money for health and welfare programs. Less than $3 billion comes from local sources such as property taxes. This has devastated and short-changed public safety and other vital services.

To address this dilemma, the Board of Supervisors recently created a budget task force, and last month we directed the members to lay the groundwork to move from crisis management to “Vision 2000,” a strategic plan to take us into the 21st century.

Vision 2000 will focus on three key areas:

* Finance. Develop short- and long-term goals to permanently match county expenditures with revenues and to achieve a AAA credit rating. This reduction in interest rates will generate additional money for programs, not bond holders.

* Management. Direct county managers to look for efficient public-private partnerships, develop comprehensive reforms of the civil service system and provide for full utilization of technology.

* Legislation. Develop clear and concise recommendations to the state and federal governments for providing funding of mandated services, repealing unfunded mandates, immigration reform and reforming civil service regulation.

The task force will provide the first step in our development of a vision for the future of Los Angeles County. This will help local, state and federal governments to meet their obligations to the people in the 21st century.