Watch CBS News

OC Welfare Programs At Risk In Push To Recover $48M From Calif.

SANTA ANA (CBS) — Public health programs in Orange County could face substantial cuts if officials are unable to recover $48 million in loans to the state of California.

KNX 1070's Ron Kilgore reports Board of Supervisors Chairman Bill Campbell is set to meet with lawmakers in Sacramento over a deal that may leave the county unable to fund community clinics and social services.

Podcast

Campbell hopes to convince legislators to return the money received from California vehicle license fees under terms of a guarantee to pay off the county's 1994 bankruptcy debt.

After reaching a balanced budget for 2011-12 following years of cutbacks, the county may have to lay off as many as 250 employees, drop $35 million in new programs, and cut an additional $13 million if the state fails to repay the funds.

Assemblyman Jose Solario (D-Anaheim) has proposed a temporary fix for the budget shortfall that must pass before legislators go home Sept. 9 or the layoffs would take effect immediately.

In addition to the license fees, California owes Orange County $91 million and wants to house state prisoners in local jails that would otherwise take beds away from federal inmates that the county could sell at a profit.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.