Robust Economy to Aid O.C. Bankruptcy Recovery

A new economic forecast prepared by Chapman University indicates that Orange County government will see robust tax revenue for the next five years, helping the county continue its recovery from bankruptcy.

The report found that property and sales taxes as well as motor vehicle registration fees should rise 27% to 40% through 2003. The forecast also suggests that Orange County’s overall economy should remain strong for the short term.

County Chief Financial Officer Gary Burton said the projections are very close to the numbers that officials have been using and reinforces the fact that the county will have enough money to meet its needs.

Over the next 30 years, the county must pay back $800 million in bonds issued last year when it emerged from bankruptcy. The proceeds from the bonds went to pay creditors owed money when the county filed for bankruptcy in December 1994.

The data from Chapman University were presented to the Board of Supervisors on Tuesday night and will be used to prepare a long-term financial plan for the county.

Officials said the plan will attempt to estimate what the county will need to spend in future years and how it can pay for long-delayed capital projects such as jail construction.