Monetary Options Evidence That O.C. Is Bouncing Back : New budget, settlement allocation are healthy signs
Several unrelated developments in recent days are indicators of how much progress has been made in the slow but steady recovery from the county bankruptcy in December of 1994.
One was the release of the final county budget for 1997-98, and the second was a settlement plan to restore lost money to cities, school districts and other government agencies. These events suggest that the county is recovering some of its ability to use discretion in the allocation of resources. Being able to pick which things it would like to do is a hint of longed-for normalcy.
The bankruptcy’s aftermath can be found between the lines in the new budget, which gives a modest increase in funding to social services, health care and juvenile justice programs. It is a sign of progress that the county can even think about giving more to these areas. It is these areas that were especially affected by the fiscal crisis, when the county awoke to discover that things could not go on as they had been.
The new budget, which was the subject of hearings last week, adds nearly 400 positions and provides an extra $39 million in new programs. If there had been an indication in recent fiscal years of such fiscal discretion, people would have thought that somebody in the Hall of Administration had taken leave of his or her senses.
But there it is: The Health Care Agency will receive an extra $14 million to improve mental health services for children. There are plans for more workers to deal with emotionally disturbed youths at Orangewood Children’s Home and plans to speed up mental health assessments for special-education students. The Social Services Agency gets additional resources for the Greater Avenues for Independence program--again, more workers.
The largess does not result from any reversal of fortune on the bankruptcy front but is the product of additional state and federal revenue. However, as Board of Supervisors Chairman William G. Steiner noted, the money does allow the restoration of vital programs cut during the bankruptcy as well as the funding of new programs. The county has benefited mightily from forces beyond its borders.
An important question is whether approaching normalcy will tempt the county to embark on a new era of big spending. A budget estimate for El Toro airport planning of $13.9 million in June grew to $20.3 million in August. What justifies this increase?
Those who worry that the airport is going to be a giant, public-infrastructure grab bag with one cost overrun after another have a new reason for concern. This is in addition to their early outcry over a huge pot of money originally earmarked for public relations.
Figuring out how to disperse the $30 million that Merrill Lynch paid the county to avoid grand jury charges was complicated. But getting that task accomplished was important. The county’s favorable budgetary news ought to make it easier to reckon with the restitution of money to schools.
It was right to give them priority status in the payback. An argument was made that settlement money was not the same as litigation proceeds, which were what the schools were supposed to get. That was putting too fine a point on it. The school districts are still due a considerable amount of money lost in the county’s gamble, and making them whole is important business.
The county does have needs, such as expanding jail space. At least it is doing better and getting some of the settlement money. In a sense, the argument over where county resources go is a nice problem to have. It has been a long time since the math seemed so favorable.
