Los Angeles County officials should prepare for even more drastic budget cuts next year than they had expected after Gov. Arnold Schwarzenegger releases his revised state budget Friday, county CEO Bill Fujioka said Wednesday.
Already making deep cuts to close a $511 million shortfall in the 2010-11 budget, officials say the county could lose as much as $1.5 billion in revenues under Schwarzenegger's proposed budget, potentially triggering unprecedented cuts in public services.
"The governor's office is speaking of horrible cuts," Fujioka said during a county budget hearing.
"As we stated in earlier meetings, we are looking at some very, very significant cuts as a consequence of the governor's proposed budget.
"But the tone and tenor of his comments (at a recent press briefing) speaks to even worse."
As part of efforts to close a $20 billion budget shortfall, Schwarzenegger proposed earlier this year to virtually eliminate the In-Home Supportive Services program, which serves about 180,000 seniors and disabled people in the county.
The governor also proposed massive cuts in the CalWORKS welfare program, which provides monthly welfare checks to about 400,000 county residents. The governor said the only way those cuts could be averted is if the federal government provided the state with $6.9 billion.
Schwarzenegger spokesman Aaron McLear said the federal government is providing the state with a "good portion" of that money, but not all of it. He declined to say how much the state would get.
"The governor is not going to propose increasing taxes so we are going to be looking at some very difficult cuts," McLear said. "These are terrible cuts. These are going to be very difficult cuts, but we can only spend money we have. Revenues didn't come in as projected.
"The Legislature only solved $1.3 billion of the $20 billion problem so we have a long way to go."
During the budget hearing, board Chair Gloria Molina said the county is dependent on the state for a large share of its revenues. She said she looked forward to the report Fujioka would release early next week detailing the impact of the governor's revised budget on county services.
"Hopefully, we can find ways to increase efficiencies and protect all our employees," Molina said. "We don't need to add to the unemployment rate, but at the same time we are going to have some tough sledding."
Fujioka last month released the county's proposed $22.7 billion budget, calling for reduced hours at public libraries, consolidation of services at health clinics, the closure of a jail at the Pitchess Detention Center in Castaic and reducing sheriff's overtime costs.
But Supervisor Zev Yaroslavsky said the county's proposed budget includes several components that may not pan out, including an assumption that the federal government would provide the county with a $137 million "hospital provider fee."
"There are a number of assumptions in the budget that may or may not pan out," Yaroslavsky said. "Hopefully our assumptions are 100 percent accurate, but if they are not it's going to be another hit to us even from what we assumed, not to mention what the state may do."