Setencich Helps Kill Bill for O.C. Privatization

An Assembly committee rejected a measure Wednesday that would let cash-strapped Orange County expand the menu of public services that can be contracted out to private companies.

The privatization measure by Assemblyman Mickey Conroy (R-Orange) fell after a maverick Republican lawmaker joined with Democrats on the Assembly Local Government Committee to ensure its defeat.

Assemblyman Brian Setencich, a freshman Republican from Fresno who served a short stint last year as speaker with the support of Assembly Democrats, cast the deciding vote to turn down Conroy’s bill. The measure needed six votes to escape the committee, but fell one short.

Setencich attributed his vote to concern for public employees who could be displaced by privatization. But some in the GOP said Setencich’s true motive was to slap a group of conservative Republican donors--including banking heir Howard Ahmanson of Orange County--that he believes engineered his defeat in last month’s primary.

“He’s bitter,” said one Capitol staffer who followed the vote.

Conroy, a finalist for a seat on the Orange County Board of Supervisors in November’s general election, vowed to bring the measure back next week for reconsideration by the 11-member Assembly committee. He also promised to put pressure on Setencich, who voted for a similar measure that failed on the Assembly floor last year.

The panel’s rejection of the privatization bill marked the second time in less than a month that the notion of contracting out more services in Orange County was rebuked. Voters rejected a ballot measure last month that would have established a county charter giving supervisors more leeway to privatize services ranging from tree trimming to janitorial work.

Conroy’s bill would exclude police and fire services from privatization, but would allow just about anything else to be contracted out--as long as supervisors determined that it was more cost effective. It would have required the Legislative Analyst’s Office to report by 2000 whether the privatization effort was saving money.

The measure follows a long line of privatization bills that have fallen to defeat in recent years, mostly because of stiff opposition from public employee unions. Foes suggest that the hidden costs of privatization, such as contract preparation fees and the price of monitoring private programs, are often ignored. They also argue that any savings are far outweighed by the problems created by displaced public employees, who would tax public welfare and health programs.

“Those employees would not be able to feed their families. They wouldn’t be able to get a job because of market conditions,” argued Assemblywoman Grace F. Napolitano (D-Norwalk).

Jan Mittermeier, Orange County’s chief executive officer, said she and other managers “aren’t anxious to hurt anyone,” but that the fiscal benefits of privatization are too tempting to ignore for counties strapped for money.

Aside from Setencich, Republicans on the committee agreed.