Local Government

Has the federal work force become bloated with a government payroll that gobbles tax revenues ever faster? The answer is an unequivocal yes for many Americans, including members of Congress who are on a crusade to rein in "big government" and transfer many federal responsibilities to the states. A peek at the federal work roster, however, yields an unexpected opposing argument: Since the end of World War II, the number of federal workers, excluding military personnel, has increased modestly.

Outraged over Orange County's bid to shift the burden of its bankruptcy onto them, a coalition of local government officials on Monday unveiled a plan of its own to end the county crisis through the purchase of the county's airport and landfills for $415 million and indefinite postponement of repaying county debts owed cities and special districts.

At least six California counties are using risky investment strategies but not to the same extent as bankrupt Orange County, according to a report from the state auditor. Nevertheless, Auditor Kurt Sjoberg recommended last week that the Legislature impose a series of restrictions on local government investments, including limits on the use of reverse repurchase agreements. The six counties are Colusa, Placer, Monterey, San Diego, Solano and Sonoma, he said.

Liberty Capital Markets Inc. had a tantalizing offer for the city of Lake Forest: "Conservative Investments, Aggressively Pursued." The city, which recently recovered about $7.5 million from the bankrupt Orange County investment pool, has been bombarded with dozens of calls and stacks of glossy brochures from firms like Liberty, all promising savvy money management and sophisticated investment advice. Liberty touted its Wall Street connections and Orange County commitment.

Saying the Orange County financial debacle demonstrated "reckless abuse" of the public trust, an advisory panel on Thursday recommended the Legislature conduct a wholesale revision of state laws governing municipal treasurers. Among the proposals by the 12-member group, which is advising a special Senate committee investigating the Orange County bankruptcy, are severe restrictions on borrowing for investment purposes and the use of derivatives.

Prodded by angry loggers and ranchers, some rural counties in the Northwest have passed laws telling the federal government, in effect, to take its spotted owl and stuff it. "They've taken our jobs. They've taken our land. It's time to fight back," said Randy Pelton, a former logger who helped write a defiant ordinance for Chelan County in north-central Washington. The local laws, which critics say are unconstitutional, attempt to limit the power of federal agencies, such as the U.S.

Students from Westminster and La Quinta high schools tried their hand this week at the art of government, holding mock City Council meetings at which they practiced allocating public funds. With $100,000 in make-believe money to distribute, the students gave $25,000 each to four imaginary city departments, including a payment to the Police Department to hire one new officer and improve its anti-drug program.

Rangers who patrol the Toiyabe National Forest, a million of the most isolated acres in the country, are now instructed to travel in pairs, stay in radio contact and avoid confrontation at all costs. They carry wallet-sized cards with phone numbers to call in case of arrest.

A sweeping proposal to overhaul local government in California won general support during its first legislative hearing Tuesday, but many key groups withheld any formal endorsement until they learn details of how the plan would work. There was little dispute among the witnesses appearing before the Assembly Local Government Committee that the state's multilayered system of 7,000 governmental units has become dysfunctional, with demands for services far outstripping their ability to raise money.