On Tuesday and Wednesday, the Board held public hearings for the 2009-2010 Fiscal Year budget. The proposed budget totals $5.5 billion, which is almost $1 billion less than the 2008-2009 proposed budget. This $1 billion reduction is necessary as a result of the continuing economic downturn, declining state and local revenues, and well as California’s ongoing fiscal crisis.

During the two days of hearings, the Board received presentations from elected and non-elected agencies and departments about the actions taken to reduce costs while maintaining the current level of services. Many of the County departments and agencies were proactive in their budget reduction process earlier in the 2008-2009 Fiscal Year, helping to bring agencies inline with this year’s reductions for expenditures and revenues.

The Board made minor modifications to the proposed budget and approved a majority of the recommended actions by the County Executive Officer. The two largest adjustments to the Budget included a $2 million augmentation to the District Attorney’s budget, and a $2 million augmentation to the Health Care Agency’s Medical Services Initiative (MSI) program to offset Orange County hospital costs. Within this action, the Board directed staff to return in the first quarter of the fiscal year and identify any additional funding available to offset reimbursement rates for hospitals.

The Board also implemented a 5% reduction in salary for Supervisors, elected officials, and executive mangers effective July 1 through June 30, 2010. This reduction will save the County over $600,000. The Board’s action is a commitment to lead by example and reduce budgets during these difficult economic times. County staff will reconcile the budget with adjustments made by the Board and return for final Board approval of the 2009-2010 Budget at the June 23, 2009 meeting.

County staff provided the Board with an overview of this year’s budget and economic outlook. To view this presentation, please click here. Additionally, the District Attorney provided a very interesting presentation during his comments to the Board. To view his presentation, please click here.

Bus Service Reduction Update- On Monday, the Board of Directors held another public hearing to accept additional public comments on the bus service reductions proposed for September. The Board heard from approximately 15 individuals. The majority of the comments requested that OCTA not reduce the span of bus operations (the number of hours the bus operates each day), but instead reduce bus service frequency (how often a bus travels its route). Taking the public’s comments into account, the OCTA Board of Directors voted to eliminate 100,000 hours of service in September, and directed staff to return to the Board with a plan to consolidate the next three 100,000 hour service reductions into the December service change. The Board decided to retain Night Owl service and to not eliminate most of the first bus service in the early morning. To view the presentation given to the Board, click here.

2009-2010 Fiscal Year Budget- The Orange County Transportation Authority (OCTA) Board of Directors approved its final budget for Fiscal Year 2009-2010 on Monday. The budget authorizes $1.21 billion in expenditures, representing a 14% increase from the 2008-2009 Budget. The increase is due to planned capital investment in the Metrolink expansion authorized by the Board of Directors and the votes in Renewed Measure M, the I-5 Gateway Project, Bus Rapid Transit implementation, and a number of other Renewed Measure M Freeway Projects. To view the presentation, click here.

Wall Street Update- I traveled with Chairman Peter Buffa and Vice-Chairman Jerry Amante to New York City for our annual update and meeting with financial rating agencies, bond insurers, and underwriters on Wall Street about the status of OCTA’s financial and operating condition. We visited the following firms: Moody’s Investor Services, Western Asset Management, Municipal Infrastructure and Assurances Corporation, J.P. Morgan, Standard and Poor’s, and Fitch Rating. The weather in New York this trip was very different from last year. This year it was overcast and rainy, whereas last year we enjoyed blue skies and sunshine. Click here for pictures, and click here to view last year’s pictures.

May Express Lanes Traffic Results- During the month of May, traffic on the 91 Express Lanes declined 0.04 percent. This figure follows a decline of 2.7 percent in April. Over the past several months, traffic volumes on the Express Lanes have been leveling off. OCTA believes this is attributed to two factors. First, last month unemployment rates declined in Orange County and job losses were minimal. Second, OCTA believes that the toll rate reductions implemented in October 2008, January 2009, and April 2009 are stimulating traffic during peak period hours. Revenues during May declined 2.0 percent. During the previous month, revenues declined 3.6 percent in April.

Orange County Fire Authority Chief Appointment- The Orange County Fire Authority Board of Directors appointed Keith Richter as the new fire chief. He was selected from a large pool of nationwide candidates and previously served as Chief for the Contra Costa Fire District. He replaces Chief Chip Prather who is retiring after 38 years in the fire service. For more information, please click here.

The Governing Board of the South Coast Air Quality Management District (SCAQMD) approved a new rule to monitor the quality of natural gas being supplied to end users located within the basin and to determine the effects of new supplies of natural gas, such as those derived from imported liquefied natural gas (LNG) on natural gas quality and emissions. The current composition of domestic natural gas supplies to basin is typically over 95% methane and less than 3% of higher hydrocarbons such as ethane and propane. Imported LNG generally has increased concentrations of the higher hydrocarbons and a higher heating value. When natural gas with higher heating value is delivered to users in the Southern California basin, it will cause changes to the air-to-fuel ratio for most combustion equipment and may adversely impact NOx and other criteria pollutant emissions from such equipment. The goal of this rule is to monitor the quality and quantity of foreign natural gas received into the gas distribution system and potential changes to gas quality in the basin, and the emission impacts of these changes in natural gas quality on natural gas-fired equipment in the basin.

Election of Officer- The Foothill/Eastern (F/ETCA) and San Joaquin Hills (SJHTCA) Transportation Corridor Agencies elected their new officers for the 2009-2010 Fiscal Year. The SJTHCA elected Laguna Niguel Councilwoman Linda Lindholm as Chairman and Laguna Woods Councilman Burt Hack as Vice Chairman. I was elected Vice Chairman of F/ETCA and Lake Forest Councilman Peter Herzog was elected Chairman.

May 2009 Traffic Statistics- John Wayne Airport has released its airline passenger traffic statistics for May 2009. In May 2009, the Airport served 739,093 passengers, a decrease of 4.2% from the May 2008 passenger traffic count of 771,124. For additional statistics, please click here.

2009 Airport Revenue Bond- On Tuesday, the Board will consider the issuance of $240 million in airport revenue bonds for John Wayne Airport. These bonds will be used to finance the construction of the new terminal, parking structure and central plant. The Bonds will be offered in two series and will be limited obligations of the County in which General Fund revenues will not be pledged. When sold, these bonds will be supported by the credit rating of the Airport and will have the benefit of being double tax exempt for investors.

I requested that the June 10, 2009 Board meeting be adjourned in memory of Noah Krom, son of Irvine City Councilwoman Beth Krom, and Charles Matheis, Sr., husband of Irvine Ranch Water District Board Member Mary Aileen Matheis. To read more about both Noah and Charles, please click here and here. Please keep Noah, Charles, and their families in your thoughts and prayers.

Last week, I attended the Tustin State of the City luncheon. The presentation by Mayor Davert was very interesting. To watch the presentation, please click here. Click here for pictures.

ANNOUNCEMENTS

Orange County Reports First Death From Swine Flu- The Orange County Health Care Agency has reported that a middle-aged man is the first person in Orange County to die from the H1N1 influenza, also known as the Swine Flu. Currently there is no vaccine available to protect against the Swine Flu, but there are actions that people can take to help prevent the spread of germs that cause influenza illness. Click here to read the Health Care Agency’s press release. For the latest updates about the Swine Flu, please click here.

Canyon Cleansweep- On June 13th–14th, the Orange County Fire Authority, the Inter-Canyon League, and Baker Canyon Green Recycling will hold the 2009 Canyon Cleansweep. The program is designed to help mitigate the risk of flood and fires by creating a defensible space around property. The event will take place from 9:00 am to 4:00 pm. Baker Canyon Green Recycling is hosting free disposal of materials such as tree trimmings, weeds, and brush. For more information, please click here.

Yorba Linda Summer Festival- On Saturday, June 13, beginning at 10:00 am, the City of Yorba Linda will host a special Summer Festival at the Yorba Linda Library. Free activities will include a rock climbing wall, balloon art, face painting, games, food, and much more. For more information, click here.

It is a pleasure to serve the constituents of the Third District.

Please pray for our armed forces and our foreign services personnel.