Ventura County Bounces Back After Tough Go

For the first time in years, Ventura County’s public administrators are not talking about money shortages and layoffs as they head into budget season.

Financial reserves, while still low, are growing. Strikes by labor groups are a thing of the past. And a bitter 10-year standoff over law enforcement budgets has finally ended.

After years of infighting over turf and dollars, governance of California’s 11th most populous county has sailed into relative stability, say those who watch its operations closely.

“You get the sense that everyone’s on the same page,” said Don Facciano, executive director of the Ventura County Taxpayers Assn. “The struggles of the past have diminished.”

Facciano and a raft of others give primary credit to County Executive Officer Johnny Johnston, a longtime public servant hired to take the reins of the 8,000-employee government in 2001.

Johnston’s ability to win trust, surround himself with talented staff and understand the intricacies of public finance were key in turning around the troubled organization, they say.

The affable Johnston uses facts, persistence and gentle humor to win the day and doesn’t back off when things get tough.

“He’s got a personality that is tremendous,” said Supervisor John Flynn. “He’s almost kind of, like, lovable. And he’s honest. If he says something, you can count on it.”

Johnston’s elevation to the top job, which includes overseeing a $1.2-billion annual budget, came during a troubled period for the county.

The Board of Supervisors had just been stung by a Medicare billing scandal that cost the county $15 million in fines and created warring fiefdoms within its healthcare agency. Lean budgets were being further stretched by a 1995 county ordinance directing an ever-greater portion of the general fund to four law enforcement departments.

Supervisors were squabbling among themselves over pet projects and perceived slights. It became so bad that some government insiders began referring to their Tuesday morning meetings as “The Gong Show.”

Against this backdrop, the man hired for the county executive’s post in November 1999 resigned after one week on the job.

David L. Baker, a former administrator for San Joaquin County, was unsparing in his criticism in a six-page letter that he left behind for supervisors.

Ventura County’s organizational structure was a mess, he told them, internal bickering was rampant and finances were near chaos. Nothing was likely to change, Baker declared, because the supervisors weren’t willing to make tough decisions.

Shocked board members sprang into action, hiring retired Los Angeles County administrator Harry Hufford to lay out a reform plan.

Hufford, a sage veteran of county government, urged the board to centralize authority in the chief executive’s office. He also recommended that any new initiatives brought to the board for approval first be vetted by his staff.

Like Baker, he told the board that it could not make real progress in restoring fiscal stability to the county until it revised the law enforcement funding ordinance. Hufford stepped down after a year and the board promoted Johnston to take his place.

A former city manager and court executive who was running Ventura County’s general services agency, Johnston had been passed over once by supervisors.

“The first time he interviewed, I don’t know if he wanted the job that badly,” said Supervisor Judy Mikels. “But the second time, he had a clear idea of what our issues were and a mental road map of how he was going to address them.”

With the support of the board, Johnston began tackling problems one by one. He successfully urged the board to hold fast against union demands for improved pensions, even in the face of pickets and strikes.

He ended so-called parity labor contracts, in which workers’ pay automatically rises. He put a stop to “end runs” around his office by department managers trying to gather needed votes from supervisors.

Most significant, though, was a major policy shift announced just two weeks ago.

After a decade of legal dispute over the funding of law enforcement departments, the supervisors and law enforcement leaders came to an agreement that ensures the county will never provide more than the growth in its revenue.

Johnston, once again, was key in pulling off negotiations that involved up to 29 players.

Sheriff Bob Brooks said he appreciated Johnston’s willingness to meet repeatedly, often at 6 a.m., to work out a deal.

“We had a lot of early morning breakfasts and that was very, very helpful,” he said. “We were able to come together fairly quickly once we were sitting at the table.”

Supervisor Steve Bennett said people know that Johnston goes out of his way to give them the straight scoop. “He’s able to build good relationships with a wide variety of people.”

Johnston, 62, said he is gratified by the praise. It has taken years to build collaborative relationships across the county, he said. “The only thing you can do is keep moving toward the center and build trust. And the only way people will trust you is over time.”

He also credited supervisors for sticking with him. “The board was rock solid right through it all,” he said. “We gained the upper hand, but this really is a partnership.”

Since Baker quit, the dynamic on the Board of Supervisors has changed with the arrival of two new members. Tensions have occasionally run high since Bennett was seated in 2000 and Linda Parks in 2002. But tempers generally are calmer and debate is more cordial, making Johnston’s job easier, observers say.

“They listen more to Johnny Johnston than have boards in the past,” said James Farley, a longtime county defense attorney. “They know he’s good at his job and has no ax to grind.”

Bennett, in particular, has added a laser-like focus to fiscal matters, analyzing them thoroughly and advocating informed decisions, many say.

“He is very fiscally tight-fisted,” Mikels said of Bennett. Mikels also stood up against pressure from labor unions over a proposed pension increase. “He plays a big role with his strengths in helping us to stay on the right path.”

Others say that while the county is heading in the right direction, it still has far to go. Ventura County is among the wealthiest in California, yet it struggles to cover its budget each year, said David Maron, a Camarillo businessman and former head of a county healthcare advisory committee.

Maron said he was disappointed when supervisors, following Johnston’s recommendation, decided to put tobacco settlement money into the public hospital and budget reserves instead of creating new health programs.

“Tobacco money has pretty much gone to the Health Care Agency instead of anti-smoking programs,” he said. “Yes, they have been able to bring stability, but at what price?”

One measure of the county’s financial progress is its growing budget reserves. Five years ago, supervisors had less than 1% of general funds set aside for emergencies.

That amount has grown closer to 7%, Johnston said; the board’s goal is 15% within a few years. Wall Street looks closely at reserves as a measure of creditworthiness, and building them back up will mean that the county can borrow money at a lower rate, officials said.

Mikels said the board and Johnston can’t pat themselves on the back very long. State budget problems mean new challenges could be in store.

“We’ve got to stay the course,” she said.

“It’s still not rosy. If we let our guard down now and slip back into our old way, it could change very quickly.”