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O.C. faces budget squeeze

Layoffs are threatened as agencies are ordered to cut tens of millions of dollars because of a sharp drop in revenue.

November 15, 2008|Stuart Pfeifer, Pfeifer is a Times staff writer

Nick Berardino, general manager of the Orange County Employees Assn., which represents more than 13,000 workers, said he and his staff are concerned about the possibility of layoffs.

He said he has asked Mauk to consider eliminating the jobs of highly paid senior managers before targeting rank-and-file workers.


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"Before they even begin to think about cutting services and employees, they need to chop at the top," Berardino said. "There's plenty of money in that area."

Orange County is hardly alone in its fiscal crisis.

Riverside and San Bernardino counties, which have some of the highest foreclosure rates in the nation, are in dire financial straits thanks largely to a huge reduction in property tax revenue.

In Los Angeles County, hiring for nonessential jobs has been frozen and further cuts are expected if the economy doesn't rebound, officials said.

In the Inland Empire, foreclosures have exploded 3,500% since 2005, dragging down the local economy.

"For the first time in 10 years, we are looking at negative growth in property taxes," said San Bernardino County spokesman David Wert.

"Property taxes are the single biggest source of revenue for the county, but if people aren't living in their homes because of foreclosures then they aren't paying property taxes."

Last month, Riverside County Executive Officer Bill Luna called for a 25% spending cut over the next four years for all county programs.

In February, 40 members of the county's Building and Safety Department were laid off, including building inspectors, engineers and supervisors.

San Bernardino County officials have imposed a hiring freeze -- except for extraordinary circumstances. The county's chief financial officer must approve all hires.

Orange County's Social Services Agency, which has 160 vacant positions, has been asked to trim $2.5 million from its budget at a time that its services are of particular need, said Michael Riley, the agency's chief deputy director.

"The programs that tend to be in the greatest danger are the programs that provide preventative or early intervention services," to prevent child abuse and domestic violence, he said.

And the programs that appear to be safe are those that are largely funded by the state and federal government, such as welfare and food stamp programs, Riley said.

The hiring freeze has affected the agency's ability to meet the public's needs, he said.

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