$120 MILLION IN LIMBO COMMITTEE MULLS PLAN TO DEFER PROJECTS UNTIL EXPECTED SECESSION VOTE.

Byline: Rick Orlov Staff Writer

As the City Council completes its initial review of Mayor James Hahn's proposed $4.8 billion budget for fiscal 2002, officials have drafted a plan to reduce or defer up to $120 million in projects in anticipation of San Fernando Valley secession.

While Hahn opposes such an action, the City Council's Budget and Finance Committee is looking at various options - including the prospect of immediately deferring spending or holding off at least until after the expected Nov. 5 secession vote.

``We want to look at all the options,'' Councilwoman Cindy Miscikowski said. ``We have to prepare for all contingencies if the local economy doesn't come back.''

The proposal asked for ``a summary of programs, expenses and equipment ... that could be deferred until December to give the city some reserves in preparation for secession.''

City Administrative Officer Bill Fujioka, who prepared the committee's report, said the proposal is an effort to protect Los Angeles in the event of a breakaway.

``I don't believe it is something we would do immediately, but it is something we might want to look at in November, if secession passes,'' Fujioka said.

The report has been referred to Chief Legislative Analyst Ron Deaton, who is reviewing the plan.

The proposal includes deferring $58.7 million in continuing programs and $60 million in construction, such as libraries, parks, removing asbestos in city buildings and completing work at the Marvin Braude Center at the Van Nuys Civic Center.

It also would include deferral of equipment for police officers and firefighters, vehicles and equipment for parks.

``The mayor doesn't support this,'' Deputy Mayor Matt Middlebrook said. ``We are not going to slow down buying library books to give kids a chance to learn, based on what is going to happen or not going to happen.

``This mayor is not going to slow down programs to remove lead paint or asbestos. It would not be the right thing.''

But even the study of such a proposal raises concern among secessionists.

``This sounds like what the city did with Proposition 13, where they put together scare budgets about what would happen,'' said Richard Close, chairman of Valley Voters Organized Toward Empowerment.

``The way the process works, Los Angeles is guaranteed it would not be harmed if there is secession, so there's no reason to even advance a plan like this.

``So you have to ask, why are they doing this? The answer is they are trying to scare the public. If something like this goes through, it will backfire. I think the public would be incensed if something like this happened.''

The committee is scheduled to wrap up its work this week and submit its recommendations to the full City Council for consideration. Any changes made to the budget would be subject to a line-item veto by Hahn.