CITYHOOD SETBACK; WILSON VETOES FUNDS FOR SECESSION STUDY.

Byline: Terri Hardy Daily News Staff Writer

Gov. Pete Wilson vetoed on Friday a $340,000 appropriation that would have paid one-third of the cost of a study of San Fernando Valley cityhood, saying state general fund money should not be used for a ``regional concern.''

The governor's action deals a setback to efforts to come up with public money to pay the $1 million expected cost of the study by the county's Local Agency Formation Commission, which would be triggered if the Valley VOTE petition drive succeeds in getting 135,000 signatures. State funding depended on city and county government paying an equal amount.

Wilson staff members said the governor did not want to set a precedent that would require the state to pay for other cityhood efforts in the future.

``I have signed bills designed to assist the Valley in determining whether it's in its citizens' best interest to set up their own government,'' Wilson said through spokesman Sean Walsh. ``I continue to support self-determination for the Valley, but regrettably, there was technical language and a little political gamesmanship being played that compelled me to veto this bill.''

Walsh said it was up to the Valley delegation of lawmakers to create legislation that would ensure the area's wishes were met.

Members of Valley Voters Organized Toward Empowerment said they were surprised by the governor's position and vowed to push for the city and county to foot the entire bill.

``We're disappointed - the state Senate and Assembly believed this was something the state should participate in,'' said Jeff Brain, president of Valley VOTE.

Added Valley VOTE Chairman Richard Close, ``I hope the governor's veto had more to do with money and was not an expression of his views on the San Fernando Valley.''

A secession study, the first step in breaking away from Los Angeles, would examine whether the city would be financially damaged by breakup and whether the Valley would be economically viable.

LAFCO has been adamant that the group petitioning the study should pay. Valley VOTE has been equally firm that LAFCO, a county agency, must foot the bill.

Two state lawmakers earlier this month tried to bridge the impasse by pushing legislation that would split the cost three ways: among the state, county and city.

No precedent

Wilson vetoed the $340,000 expenditure because he did not want to set a precedent in which the state pays for boundary studies done by local commissions, said H.D. Palmer, assistant director of the state's Department of Finance.

``The legislation would have activated a mechanism that would open that door,'' Palmer said. ``That caused us great concern.''

The Valley is the only instance in which a community has tried to break away from a city in the past 90 years in California. Other cityhood efforts involved annexations or formation of cities in unincorporated areas.

Palmer said the governor's decision was about procedure and ``was not an opinion on secession.''

State Sen. Cathie Wright, R-Simi Valley, who authored the funding bill, said she thought the veto would hinder Valley VOTE's efforts.

``They don't have a million dollars,'' Wright said. ``This will prolong their efforts at a time when the public wants resolution.''

She said she was disappointed in Wilson's actions, saying he didn't do enough research.

``With a $4 billion surplus, I don't understand cutting $340,000,'' she said.

Wilson signed a $75.4 billion budget Friday that included $31.4 billion for California's schools and a $1.4 billion tax-cut package.

An aide for Assemblyman Robert Hertzberg, D-Van Nuys, one of the lawmakers who fought for the funding compromise, said they disagreed with Wilson's rationale.

``A lot is at stake,'' said Paul Hefner, press director for Hertzberg. ``This proposal would affect so many folks, it deserves a full study.''

County contribution

County Supervisor Zev Yaroslavsky said he would support sharing the cost but doesn't know whether those feelings are shared by his colleagues.

``Frankly, I don't know if there would be enough votes, and I don't think the City Council would support it,'' Yaroslavsky said.

Yaroslavsky said the Board of Supervisors would have had a ``harder time saying no'' if the state legislation had been approved.

City Councilman Hal Bernson said he will support efforts for Los Angeles to come up with a portion of the costs.

``The governor has turned his back on the Valley and is working with those trying to make it impossible to get a study,'' Bernson said. ``It's a good thing for him he's not running for re-election because he would not get too many votes in the Valley.''

An aide to Mayor Richard Riordan said the mayor would oppose the use of any city funds.

``Have the city pay to study breaking it up? I don't think so,'' said spokeswoman Noelia Rodriguez. ``I don't see the mayor leading the charge for that.''

Close said added pressure might be put on the city to come up with the money as part of a settlement of a lawsuit filed by the American Civil Liberties Union of Southern California. The suit claims city officials interfered with Valley VOTE's petition drive by ejecting its members from the Van Nuys air show.

Valley VOTE is scrambling to collect enough signatures by Thursday to trigger the citywide study. Brain said the group has gathered almost 120,000 of the 135,000 names needed but probably needs 50,000 extra signatures to ensure success.

Hertzberg also has worked to pass legislation that would allow Valley VOTE 90 additional days to collect signatures.

But that bill, which has passed through the Senate, is stalled there as part of the end of session political gamesmanship, Hefner said.

``This legislative logjam has nothing to do with this bill; it's about the differences among the members of the Assembly and the Senate,'' Hefner said. ``It's our hope that there's a resolution to this by the end of the session.''

Hefner said a legal opinion issued by the legislative counsel determined that the group already had 180 days under law to collect signatures - even though LAFCO has deemed that the group has only 90. Hertzberg's bill, then, would simply clarify the matter by restating the existing law, Hefner said.

Close said Valley VOTE will operate as if its deadline is Thursday, but said the group obviously would welcome legislation that gives it more time.

For that reason, Close was reluctant to bash Wilson's veto Friday in hopes

that the governor would sign the deadline extension bill.

``I'm smart enough not to criticize him too much - we need his help next week,'' Close said.

Daily News Staff Writer Rick Orlov contributed to this story.