Budget calls for deep cuts

June Casagrande

Local leaders’ response to the governor’s budget on Friday were a

mixture of displeasure and hope that the cuts to local government

won’t last any longer than necessary.

Mayor Tod Ridgeway said that the governor’s budget carried ominous

echoes of ERAF, the nickname for the 1990s Sacramento measure that

skimmed money from cities’ property tax revenues to pay for

education. Though the measure was supposed to be temporary, it

continues taking portions of city money for states.

Gov. Arnold Schwarzenegger’s fiscal 2004-05 budget includes $1.3

billion in cuts to local governments, but makes good on his promise

to reinstate car tax revenues to cities.

“This is just robbing Peter to pay Paul,” Ridgeway said.

Local leaders can’t yet know exactly how much this will cost the

city. But Ridgeway entertained a rough estimate that it would mean

about $2.4 million to Newport Beach. The city, however, will likely

get all of the roughly $2.9 million in car tax revenue.

“Everyone has to make sacrifices -- counties, cities,”

Schwarzenegger said when he unveiled his budget to the public in a

televised speech.

“We can’t know what the numbers are yet, but any loss will come

out of the general fund,” Ridgeway said, adding that a general fund

reduction could affect police and fire services.

“I certainly can’t envision any layoffs of safety personnel, but

it’s possible this could mean less hiring in the future,” Ridgeway

said, “and that would be a bad thing for Newport Beach.”

City Councilman Steve Bromberg, who as mayor last year endorsed

Schwarzenegger’s bid for the governor’s mansion, said he’s confident

that the cuts will be short term.

“We knew it was not going to be a bed of roses,” Bromberg said. “I

still trust the governor. I think his heart and his mind is in the

right place. ... It won’t be a healthy situation, but it won’t be

permanent.”

The governor’s budget requires two-thirds approval by both houses

of the state Legislature before it is approved.