Let’s Not Blow Coming ‘Windfall’

* Earlier this year the Orange County Board of Supervisors adopted a “strategic financial plan” that predicts whether a governmental program, or bundle of programs, is financially viable.

Designed by County Executive Officer Jan Mittermeier and Chief Financial Officer Gary Burton, the plan includes some attributes of a well-managed private business.

For example, it includes a computer model that provides a 10-year view of changing budget assumptions and spending decisions. The Orange County Taxpayers Assn. was among those who urged the supervisors to adopt the plan.

At that time, the county had only $158 million in discretionary money for the next 10 years. Unfortunately, it also had a “wish list” from county department heads totaling $950 million for the same period.

In March of this year the plan passed its first test: It helped county supervisors prioritize programs and say no to many demanding, and sometimes deserving, constituencies.

Now the supervisors and the plan face a different kind of test. The county may receive $33.5 million per year for 25 years as its share of the settlement of a health-cost lawsuit against tobacco companies.

Predictably, special interests will clamor for off-budget allocations from this windfall (which actually is a huge tax increase on smokers).

Likely petitioners will include participants in Orange County’s infamous investment pool, who will seek reimbursement of money they lost in the bankruptcy, and health-care advocates, who will claim that the money should be spent on smoking-abatement programs and health care.

The Orange County Taxpayers Assn. urges that we not spend the money on trendy, politically attractive programs that are not part of the plan. Among the strategic financial plan’s carefully considered priorities are bankruptcy debt defeasance, Juvenile Hall expansion, and the restoration of the county contingency fund. The taxpayer’s association suggests that we put the money in those programs, in accordance with the plan.

Smoking abatement programs are unlikely to work to any cost-effective extent. Additional bankruptcy debt defeasance would be the best kind of tax cut.

REED L. ROYALTY

President

Orange County Taxpayers Assn.

San Juan Capistrano