State’s Deficit May Hurt Poor, Sick, Troubled

Orange County officials paint a grim portrait for what’s in store if they have to cope with their share of the state’s estimated $23.6-billion deficit and its effects on county programs and services.

After assessing budget numbers, executives from three departments--social services, probation, and health care--said they anticipate having to cut programs and halt new ones because of a projected $64-million shortfall in state funding for the three agencies.

The departments account for nearly 45% of the county’s $4.2-billion budget.

But Orange County’s financial troubles pale next to those of Los Angeles County, whose Department of Health Services is recommending cutting more than 5,000 employees to cope with a health-care funding deficit expected to total $688 million over three years.

One reason for the disparity is that Los Angeles County operates six public hospitals. Orange County relies on a health-care system that contracts with hospitals, physicians, and a network of community clinics to serve people without health insurance who don’t qualify for other public programs.

Details of Orange County’s budget still are being worked out, but some of the hardest-hit programs are expected to include foster care, adoptions, summer-youth jobs, juvenile drug rehabilitation and homeless services.

County officials interviewed last week would not discuss the potential for staff layoffs. The five-member Board of Supervisors has wide discretion to downsize or eliminate programs, which they’ll consider doing when they hold budget talks next month.

County Executive Officer Michael Schumacher has told some top department officials he hopes to prevent job losses by handling cutbacks through attrition.

Larry M. Leaman, director of the county’s Social Services Agency, said the state’s deficit means his department faces a $39-million shortfall.

Balancing his department’s budget and still providing services will be one of the toughest challenges he has faced in more than two decades in county government, Leaman said.

Though Social Services has a $404-million budget, half of the funding comes from federal and state governments for foster care and welfare. Some funding is contingent on the state paying matching funds, which Leaman doesn’t anticipate receiving in the coming budget cycle.

The fallout already has begun. A summer youth jobs program in Anaheim and Santa Ana was just approved. Because of the anticipated shortfall, Leaman had to call a supervisor and order the program halted.

Other potential cuts in social services include:

* Up to a 20% reduction of staff handling welfare-to-work programs, food stamps, Medi-Cal and foster care.

* A 10% reduction in Adult Protective Services.

* A 30% reduction in adoption and family services.

* Elimination of funding for home repairs and other services for seniors and disabled persons.

* Halting of cost-of-living increases to families receiving cash benefits, including the aged, blind and disabled on Supplemental Security Income.

Probation Department officials anticipate an $11-million shortfall. In some cases, that could mean fewer youths are kept in custody, said Colleene Preciado, chief deputy probation officer.

For example, the county has a 56-bed drug-treatment program at Theo Lacy Branch Jail in Orange for 18-year-old males. They are wards of the court who may have to be moved to Juvenile Hall in Orange.

“In turn, that will mean returning others at Juvenile Hall back to their homes because the wards have priority,” Preciado said.

Medi-Cal funding for mentally disturbed children may be reduced, said Juliette A. Poulson, director of the county’s Health Care Agency. She said she expects to have to cut as much as $15 million.

“One of the sad things here is that these cuts will affect the most vulnerable people,” said Gary Burton, the county’s chief financial officer.

“We’re not overreacting at this time,” Burton said.

CalOptima, which provides health-care funds for low-income children, the elderly and disabled, will be tapping into $11 million of its reserves to help cover an anticipated $20.8-million deficit.

The remainder of the deficit will be covered by reducing payments to service providers, such as hospitals and physicians, as well as through administrative cutbacks.