$3 Million Is Shifted by County

The Orange County Board of Supervisors on Tuesday shifted more than $3 million from its general fund into an unemployment fund that had been used improperly to pay for employee training, workshops and other expenses.

The board’s action came more than eight months after the county’s internal auditor reported that the county human resources department improperly had spent money intended for unemployment benefits and other employee expenses.

By replenishing the unemployment fund, the board further depleted its reserves at a time the county is bracing for $62 million in cuts under Gov. Arnold Schwarzenegger’s proposed plan to shift some property tax revenue from local government to the state.

“Everything we take out of the general fund is important. This is the fund we use to pay for public safety [and] public health,” Supervisor Chris Norby said. “This is the only discretionary fund we have.”

The unemployment fund is intended to pay unemployment benefits to county employees who lose their jobs. The error was uncovered during an investigation by Peter Hughes, the county’s internal auditor. The report said the expenditures should have been paid from the county’s general fund, prompting Tuesday’s action.