I hope everyone enjoyed National Night Out at the District in Tustin. The annual event is put on by public safety around the country. Many cities in The Real OC, including Tustin, enjoyed a different view of the police and fire departments that serve our community. We are fortunate to have one of the finest of each to protect and serve.
Since there were no official meetings at the city level this week, we thought we would discuss an issue of pressing concern at the county level, where it is getting to be a regular thing that the Orange County Board of Supervisors have trouble admitting fault.
The Republic machine that runs most of Orange County just doesn’t seem to get it. It seems every time local government gets into trouble, they don’t want to admit they had any part in it. From the multitude of sexual harassment suits to the CalOptima debacle, the Orange County Supervisors always seem to find a way to blame others for their stupidity. When Carlos Bustamante was finally outed for his, shall we say, interesting management techniques, the public discovered what the rank-and-file employees of Orange County government knew all along. Yet, the OC Supervisors played the blame game and wound up using Tom Mauck as cannon fodder.
The Board of Supervisors continued to blame others for their poor oversight when the Grand Jury issued a couple of reports questioning their ethics and management of CalOptima, even when faced with the facts. John Moorlach, who refuses to lead by example, complained when the Grand Jury did its job. And, Todd Spitzer, in a holding pattern for Tony Rackauckus’ job (and, consequently, the Jury’s potential boss), was indignant that anyone, let alone the Grand Jury, could find fault with the BoS.
Through all of the bad publicity the Board of Supervisors has undergone lately, one important issue seems to have fallen out of the public’s eye. It wouldn’t be that big of a deal except it is worth $76.5 million dollars. That’s the amount of money the state will withhold from Orange County in property tax unless they can come to some sort of agreement.
And, as usual, the Board of Supervisors wants to lay the blame on someone else. The only trouble is, they couldn’t. So, they went into denial mode.
Back in May, the Voice of Orange County outlined the problems the county ran into when they refinanced bankruptcy debt. At the time, Orange County still received vehicle license fee money from the state to help with the remaining debt. In 2005, however, supervisors sought a reduction in costs and, in so doing, they inadvertently eliminated their access to the VLF. Actually, that’s not quite true. Many sources claim the county was aware of the faux pas but chose to ignore it, hoping no one else would notice.
That worked until this year when the folks working on Governor Brown’s budget caught up with the money and took it back. That resulted in a court case that everyone except the Supervisors knew the county would lose.
After ignoring the problem and keeping the money, then losing in court, the Board of Supervisors, now faced with the facts, is finally ready to make a deal with the state. Only trouble is, the state may not be willing to deal. And, of course, the supes have said that, if no agreement can be reached, others will pay for their mistake.
“Bridging the $76.5 million reduction would require a combination of labor reduction, revenue assumptions and non-labor cuts (e.g., services & supplies, equipment, capital projects, etc.),” reads a memo being distributed by county Chief Financial Officer Frank Kim.
County labor leaders have already sent out mass notices warning workers about potential cuts and where the pain might be felt.
During a meeting with the OCEA Bargaining Team, Kim offered three scenarios to OCEA members. One was that the County would lose the $76.5 million in VLF. The second scenario would have them lose the VLF but convert a special property tax set aside that Senator Lou Correa secured in 2009, into an ongoing replacement fund. The third scenario was just as dire: The county keeps the VLF but loses the property tax set aside.
Of course Kim, who also appears to be in denial, didn’t mention the likelihood of the state thumbing their nose at the county and keeping everything.
In a missive to employees, Berardino laid out the BoS strategy to lay the responsibility of getting out of the mess by taking it out on labor.
OCEA General Manager, Nick Berardino, is not taking it lying down. Berardino, who appears to be the only one who saw the potential for failure during this episode of the BoS drama, told the Supervisors that it would be unfair to continue to place the burden of resolution on the backs of the rank-and-file employees of the county.
The County predicts they could bridge the revenue loss with labor reductions, revenue assumptions and other non-labor cuts, however any specific and direct impacts are not currently known. We told the County again, as we’ve said many times before, working families did not create the bankruptcy and the fallout from the bankruptcy must not fall on the backs of working men and women!!
Berardino further points out that the blame lies squarely with the Board of Supervisors who, even though they were aware of the cuts, directed then Auditor-Controller David Sundstrom (who has since left for cooler skies to the north) to act as if nothing had happened. Talk about denial.
There may be light at the end of the tunnel. The $50 million dollar deal Senator Correa cut for Orange County in 2009 has now become a key bargaining chip in the game.
“What we thought should have been a step toward a bit of gravy is now just a struggle to get back to where we were,” Correa said. “Without that $50 million, we’d be nowhere. There would be nothing to negotiate.”
The deal Correa is attempting to work out, however, will only return the county to the original status quo and will still leave the county with budget cuts to deal with, some permanently. And, while the county said they are not looking at layoffs to bridge the funding gap, Nick Berardino is not likely to take them at their word.
Neither are Department Heads, some of whom are scrambling to meet with their employees to reassure them -or warn them- of budget issues. Most departments have cut to the bone as it is and, while employees have been able to maintain services, that is not likely to last should layoff occur.
So, while the Board of Supervisors fiddle, it is the public that could get burned if a deal can’t be reached. Senator Correa, who has come to the aid of the county many times before, describes the negotiations with the state as a “painful process”. We agree. Good luck, Lou.
“You’re here to help us, not embarass us nationally.” That’s the words from Orange County Supervisor, John Moorlach, as he lashed out at the Orange County Grand Jury for their latest missive dinging the Board of Supervisors for massive mis-management of CalOptima. Two scathing reports caused the Fair Political Practices Commission to initiate an ethics investigation into the handling of the organization by the Board.
All I can say is, it’s about time.
I can also say it is shameful the way the Board of Supervisors reacted. Although any reader of Our Town Tustin knows I have little regard for the Orange County Grand Jury, it never surprises me how the, so-called, Republican Leadership continues to deny corruption and, when denial fails them, lashes out at those who speak the truth.
PBS SoCal televised the ranting supervisors in the video above. Each supervisor took a swipe or two at the Grand Jury. But, it was Todd Spitzer, future District Attorney and, presumably the Grand Jury’s boss, who actually had the gall to infer that Orange County has no corruption. News flash, Todd, Orange County is about as corrupt as can be and no amount of denial by you or your corrupt cronies on the Board can allay the belief of the voters here in the Real OC.
Supervisor Janer Ngyuen, saying the report “demoralized” her and her family as well as “the 500 employees who work at CalOptima”, was laughable in her defense of a situation that she clearly manipulated to garner favor wtih her constituency when she was appointed as the Board’s representative to the organization. I have news for her, the 500 employees of CalOptima were probably laughing their collective asses off when they saw this video.
Grand Jury Foreman, Ray Garcia, says he stands by the reports. “The only thing I will say about the corruption thing is, you ought to read the corruption thing. It’s a chronology of four decades of malfeasance, misfeasance and downright crime.” Unlike us, Garcia says he was surprised on the backlash from the ethics commission suggestion. Of course, we’re not.
This video shows one thing: the Orange County Board of Supervisors have shamed themselves, more than any report or investigation possibly could. Instead of whining about this, as Shawn Nelson and poor, little hurt Janet Nguyen did, they should be taking an honest look at themselves and how they have acted during their tenure. From failures to identify and rout out sexually criminal behavior to how they have treated the employees in general of this county, they have led among Republican leaders in this county to hide the truth from the public. And now that they have been called on it, all they can do is scream and yell at the messenger.
The investigation will take a year or more. In truth, I don’t expect much to come of it. Ann Ravel, the chief of the FPPC is a milkweed at best. She has never outed any politician, Republican or Democrat for a substantial infraction and I don’t expect her to do much more than pay lip service to this. It is refreshing to see this out in the open, however. And it is fun to watch the worms squirm.
Yeah, I know, you were expecting a post on the upcoming (and yet not quite thrilling) Planning Commission meeting tonight. We can’t help you. That’s because, since Friday, when they posted an agenda with one item of decidedly non-interest, they subsequently canceled their meeting. At least they are not wasting thousands of dollars in city staff time and resources on a single item that could be put off until next meeting. The only issue is, did they give proper notice of the cancellation? This is only important to those who might have spoken on the public hearing issue (probably zero in this case) and those civil ethicists like myself. The next meeting of the Tustin Planning Commission is June 25, 2013 at 7 pm.
In the meantime, I thought I would cast the net a bit wider and write about the latest meanderings of lame duck Orange County Supervisor John Moorlach. When we last discussed Moorlach, he was contemplating a run for California Governor…. or was it Assemblyman? Oh yeah, it was Auditor-Controller. Well, John has apparently decided against running for governor. in a recent article from our friends at the Orange County Breeze, Moorlach stated in an email to his constituents that, after much soul-searching and looking to his mom, he decided to rule out a run for governor.
“This is a personal-management principal that was deeply ingrained into my psyche by my mother’s parent tape. A parent tape is something that your parents say over and over again in order to drill something into you,” the email states. Apparently, that tape includes excerpts on not doing stupid things like mounting an ill-fated run for governor against an immensely popular and Democratic candidate in an overwhelmingly blue state. “After spending a good five months looking at what I should be doing next, I have taken a potential run for the office of Governor of the State of California off the list….I am not running for Governor for the State of California.”
There. He said it. That makes it absolute…sort of.
Remember when Moorlach first ascended to the Board of Supervisors? I do. One of the most prominent and promising things he said was, “I do not intend to run for higher office. This [the board of supervisors] will be as far as I go,” or words to that effect. I am sure they are recorded somewhere as I was not the only one present when he said them.
Apparently, however, Moorlach has a selective memory. Several months ago, when he first announced his exploration for a possible run for governor, I recalled his original words. Although I was not shocked that he would renege on his promise, actually more of an avowal, I think everyone was amazed that this egotist actually thought himself worthy of the governorship of California. Anyone else would have quietly gone to the real kingmakers of the Orange County GOP and discussed the matter with them first. Instead, Moorlach took the road of his colleague, the ambitious yet reckless Todd Spitzer, and found himself contemplating his embarrassment when the likes of Scott Baugh and Mike Schroeder failed or refused to back him on his play.
As time went on, it was becoming even more obvious that Moorlach wanted desperately to become a career politician, something that he eschewed in the beginning. Shortly after his “governor” announcement, he lowered his sights to Orange County Auditor-Controller, a job that even I will admit he is well-qualified to assume. Then, he turned left (or is it right) again, and said he was exploring a run for the Assembly. And, he did all this while not taking himself out of the run for the governorship. That made him look like even more of a buffoon than he already was. Was he actually (and desperately) hoping the GOP honchos, who finally figured out the only thing the rest of the GOP wants from them is their money, would speak up and say, “Yes! We want John!” Oh, please.
Since the years of Moorlach’s warning of the bankruptcy, the OCGOP has preferred he remain in the background. He was anointed for the Board of Supervisors run and won handily by 70%. Most of that, however, was due to the fact he faced no real opposition. Prior to his run for the Supervisors, he was appointed county tax collector and then won two more terms only because no one really wants to be the tax collector. I suppose all those years in office, with a nice pension to garner, has jaded our John. He has, in the end, become the nemesis of the everyday people, a career politician.
It seems John has come full circle. He has spent much of his professional life in elected office, first as tax collector and then as Orange County Supervisor. where he was unable to accomplish his real goals dismantling the public employee pension system while keeping his own lucrative pension intact. His “exploratory” stab at the governorship died for lack of a second and his pitch to swap seats with Assemblyman Alan Mansoor remains in limbo due mostly to how Mansoor sizes up the battle with Michelle Steel. That leaves Moorlach the almost sure bet of winning the race (if there is one) for auditor-controller, a position, as we said, for which he is well-qualified.
But, now that he has had a taste of power, will Moorlach be content to live the rest of his career in relative obscurity? If he does take the auditor post, you can bet he will continue to make the most of it by publicly speaking -and opportunistically blasting- the future OC Board. And, we will be able to thank John’s mom for giving him sage advice.
Every time I think of the OC Board of Supervisors, I’m reminded of Mel Brooks’ “Blazing Saddles”. No, not the campfire scene, although I can understand why you would go there. I’m talking about the scene where Governor William J. Le Petomane is meeting with his advisors and insists everyone be as incensed as he is over the corruption in fictional Rock Ridge. Everyone around the table starts saying “harumph, harumph…”. That’s the reaction of the Supervisors as they received the bad news that most everyone else in Orange County already knew.
Wednesday, Superior Court Judge Robert Moss ruled against the county saying they illegally withheld more than $73 million in property taxes from the state. To make matters worse, the figure now looms at $140 million by the time this fiscal year is over. The Voice of OC did a pretty good job of outlining the problem in layman’s terms.
When the county financed its billion-dollar bankruptcy in 1995, state officials allowed them to send a portion of their vehicle license fees directly to bond holders. But in 2007, when the county refinanced its debt, the legislative authorization for the special license fees was not included.
Despite warnings that the authorization should be quickly reestablished, county legislative leaders, lobbyists or staff did not act. The intercept, as its known, was not addressed in any subsequent county legislative platform or by the county’s main lobbyist, Platinum Advisors.
In 2011, Brown’s budget staff discovered the omission and took back the money, prompting an intense reaction from county leaders. Assemblyman Jose Solorio sponsored last-minute legislation to fix the situation for the county, but it failed to make it through both houses of the Legislature.
You read right. The county ignored the problem even when the gaff was first discovered and then, when the state demanded the money to balance their own budget, county Democratic Assemblyman Jose Solorio tried to fix it with last-minute legislation. But, Sacramento Democrats took the opportunity to beat down one of the few Republican strongholds by refusing to pass the legislation in time. Without the legislation, loss of the money was a sure thing.
Nonetheless, the Board of Supervisors convinced Auditor David Sundstrom to withhold payment of property taxes from the state. The state promptly sued the county and the writing was on the wall. As with previous pension lawsuits involving the deputy sheriffs union and the retirement system, the Gang of Five ignored the obvious and argued that the intent to keep the status quo had always been there and so, they must be right (right about now, I am hearing John Moorlach jumping up and down while screaming epithets at Jerry Brown).
From the outset, nearly everyone in the county has warned them the court battle would be uphill. In reality, I don’t think anyone wanted to tell the county it had a zero chance but, in truth, that is what they had.
In a video briefing to public union employees, Orange County Employees Association General Manager, Nick Berardino, said, “It was, once again, county executives falling asleep at the switch,as they did during the bankruptcy, when they forgot to include the $73 million dollars state subsidy when they refinanced the bankruptcy funds.” Berardino did agree that the state is treating the county unfairly by requiring the repayment but also said the county did not do its job in protecting the funds to begin with. Berardino lamented that Supervisors are already ringing the layoff bell and laying the responsibility on the backs of the public employees to balance the budget. “The county did the same thing when it declared bankruptcy in 1994.”
Berardino is not the only one to publicly admonish the county for its lack of diligence. In an Orange County Register article published May 9th, Andrew Galvin alleges the local community colleges pleaded with the county in 2011 not to withhold the funds from the state. The money grab, according to them, would result in a serious shortfall of funds going to community colleges in the area. When the county continued the grab, the community colleges joined the state in the lawsuit.
So, when will the county ever get it right? If this were a trust owned by a private family, they would have fired their lawyers for giving them bad advice long ago. In the case of the Board of Supervisors, they have been led astray time after time and not only by county counsel, but attorney-come-chief-of-staff Mario Mainero as well as a plethora of hired gun law offices who, oftentimes while giving good advice, have been unsuccessful in turning the opinion of the Gang of Five.
I have no idea how much money has been spent, so far, by the Board of Supervisors on this debacle. Any amount, however, is too much when one considers how tight the budget is now. Unfortunately for the citizens of Orange County, the Gang of Five may be planning another play as they appeal the ruling to a higher court. In the best case scenario for them, the judge would delay the transfer of funds until the appeals court sides with the trial court. That would be a temporary fix at best. Eventually, the money would have to be repaid. What the Supervisors might want to look at is negotiating a payment schedule. Given the animosity the OC GOP has garnered in recent years in Sacramento, our Democrat governor may turn a deaf ear. Better get that checkbook out, John.