The Legislature Shortchanges O.C. Big Time

A recent advertisement shows some young children asking if their parents would run through fire, fight off dangerous animals, and even (gasp) drive a minivan for the kids’ safety.

Perhaps some parents might consider the cost, and connotations, of minivan ownership a major sacrifice. But most Orange County parents make a much greater financial commitment to their children’s well-being simply by choosing to live here. Housing is not cheap in Orange County, yet parents make the financial sacrifice to buy or rent here in part to provide their children with better schools, safer communities, wholesome recreation facilities and an increasingly broad range of cultural opportunities.

Thanks to the Legislature, Orange County parents have to make greater financial sacrifices to provide education, security and recreation for their children than parents anywhere in California. Parents in Orange County struggle to pass school bonds while the state continues to take tax dollars from their pockets--dollars that could go a long way toward maintaining Orange County schools in the first place--and spend them elsewhere.

The magnitude of this situation is remarkable and should be sobering for Orange County parents. In fiscal 1991, per-capita state subventions, money granted by government, to Orange County (including state subventions to all cities in the county) amounted to $196. In the same fiscal year, per capita state subventions to San Francisco (city and county combined) amounted to $478. The situation did not improve for Orange County in subsequent fiscal years. In fiscal 1997, per capita state subventions to San Francisco had increased to $705, while the comparable amount for Orange County was $296.

To put this in perspective, in fiscal 1997, if state subventions to Orange County (including the cities in Orange County) had matched, on a per-capita basis, state subventions to San Francisco (city and county), Orange County and its cities would have received $1,868,109,000 in state subventions (yes, that is over $1.8 billion).

In fact, Orange County and its cities received $783,792,669 in state subventions in fiscal ’97. The difference between these two amounts is disturbing. Orange County citizens were, in effect, shortchanged $1,084,316,331 by the Legislature in fiscal ’97 alone.

The impact of this difference is huge. For example, the $1 billion plus would have been enough to clean the slate on the county bankruptcy. Indeed, it is unlikely that the bankruptcy would have even occurred if Orange County had been treated like San Francisco County. Perhaps more important, city and county taxes could have been lowered, which would have reduced the anti-tax sentiment that makes passing school bond issues such a challenge in Orange County.

The cumulative amount of money involved here is no less sobering. In the decade preceding fiscal ‘98, San Diego County, which like Orange County has been badly gouged by the Legislature, was shortchanged to the tune of $6.5 billion. The figure for Orange County is probably higher, as San Diego County gets more per capita than Orange County.

The fiscal tensions festering in Orange County are the direct result of state legislative actions. Often, and erroneously, Proposition 13 is blamed for local government fiscal problems.

Proposition 13 did reduce the ability of local governments to arbitrarily raise property taxes. But subsequent state legislative actions, most notably the infamous AB 8, were crafted in such a way that Orange County, among others, was severely punished by entrenched legislative powers furious at voters who had supported Proposition 13.

San Francisco gets more in state subventions, on a per capita basis, than almost any other California county. This is especially ironic in light of the fact that San Francisco has the second highest per-capita income in the state, exceeded only by Marin County. Even more ironic is that Orange County’s legislative delegation sits idly by, year after year, while their constituents struggle to cobble together a workable financing plan for local schools, cities and the county.

San Francisco is much smaller than Orange County, and hence has a smaller legislative delegation in Sacramento. That delegation has managed to run the Legislature for 20-plus years, however, and hoodwink their colleagues from around the state, especially those from Southern California. Incredibly, as recently as fiscal 1997, even Los Angeles County was getting $239 less per capita in state subventions than San Francisco.

Orange County parents can change this situation, but they must not be subtle. Tell your state legislator that you want AB 8 reform now, and parity throughout the state. If they say they can’t deliver, vote against them. Clip and make copies of this column, and distribute them to all your friends throughout Southern California. Encourage them to get the Southern California legislative delegation working together for “fiscal fairness now” (that has a nice ring to it). Tell your local school board, city council and county supervisor to push your legislators for “fiscal fairness now.” If they won’t, work against them in the next round of elections.

Your kids are certainly worth the effort, and you don’t even have to buy a minivan.