Supervisors paint rosy picture of O.C.’s finances while addressing housing, homelessness at State of the County luncheon
County Supervisors Katrina Foley and Don Wagner painted a rosy picture of Orange County’s finances while acknowledging ongoing challenges associated with the shortage of affordable housing and rising homelessness, among other issues, during the second annual State of the County Luncheon held in Newport Beach on Friday.
The event was hosted by the Newport Beach Chamber of Commerce at the Pendry Hotel. As many as 480 attendees working in the fields of healthcare, tourism, property development and more packed a banquet hall, rubbing elbows with elected officials like the event’s featured speakers, Foley and Wagner, as well as Orange County Dist. Atty. Todd Spitzer, U.S. Rep. Lou Correa and others.
The luncheon opened with an introduction from Chamber president and chief executive Steve Rosansky, delivered alongside plates of chicken or fish served over quinoa, faro, baby kale, cauliflower and roasted garlic lemon dressing, as well as cups of chocolate pot de crème. That was followed up by a comprehensive synopsis. Then, the meat of the discussion began with a beaming synopsis of the county’s financial situation from Foley.
“We have healthy fiscal reserves,” she told luncheon attendees. “We are prepared for any catastrophic event. We are super funded in all of our reserve categories. And for those of you who have been following pensions over the years, we will be fully funded in our pensions by 2033.”
She went on to highlight major improvements slated in the county’s $2.6 -billion, seven-year capital improvement plan. These include the modernization of landfills to allow for the capture and repurposing of greenhouse gasses, $590 million of investment for deferred maintenance and upgrades to John Wayne Airport, $133 million set aside for parks and libraries, $842 million for roads, flood channels and bike lanes and other improvements.
Wagner echoed Foley’s optimism for Orange County’s immediate future, but they both also acknowledged a broad field of challenges ahead. Some of those may wind up directly tied to a projected multibillion-dollar deficit at the state level.
Wagner, the board chair, pointed out that Orange County has a “$9.3-billion budget this year, and only $1.1 billion of it is under the control of the Board of Supervisors.”
“What I think will be a challenge next year is getting the same level of state money because of the budget crisis in Sacramento,” Wagner said. “What I worry about is that if that level of funding doesn’t come through next year there are going to be programs that are at risk, there are going to be cuts that are going to have to be made on these state programs and there’s going to be pressure on us to backfill them.”
Regardless of the likelihood of financial troubles trickling down to the local level, Foley and Wagner said the county and lawmakers remain committed to confronting lingering crises, including the rising cost of housing, potentially pricing future generations out of Orange County. They said local leaders are exploring ways to cut down red tape to make the process of creating homes, including multifamily developments, more efficient.
“Property taxes are through the roof because homes are selling for so much,” Foley said. “Now that has it’s problems as well. We know that, for our kids, it’s going to be hard ... we have to make sure we’re planning for a future so we have a workforce that can take care of us when we’re no longer running with the wolves.”
In the battle against homelessness, the supervisors touted Orange County as a leader in the development of supportive housing. Foley said they are in the process of producing another 1,800 units of housing for the homeless. Lawmakers have also been successful in cutting down barriers preventing veterans from getting into vacant units available through the U.S. Veterans Affairs Department. Service members as well as the elderly constitute two of the largest growing demographics in the homeless population.
“It is true that we are not going to arrest our way out of homelessness,” Wagner said. “It is also true that there are people out there on the streets who need and deserve a compassionate approach. But you can arrest your way out of vagrancy.”
He went on to highlighting county and city leader’s efforts to address homeless encampments while encouraging those displaced toward support services and, if applicable, treatment for mental health and addiction-related issues. Wagner also made reference to a recent U.S. Supreme Court’s decision clearing the way for municipalities to enforce anti-camping laws regardless of whether shelter beds are available. While they have no intention of “rounding up” communities of homeless people at large, the ruling gives authorities more leverage to get people into treatment, Wagner said.
“In my view, there’s nothing compassionate about letting someone sleep under a bridge because they’re delusional,” Wagner said.
“Though our homeless numbers are creeping up, they’re not up percentage-wise as high as we’ve seen in the rest of the state,” he added. “So, this approach of making sure there are beds available ... bringing resources to the table to help people, works.”
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