HAHN PRESSES STATE HIKE IN SALES TAX PUSHED TO AID L.A.

Byline: Rick Orlov Staff Writer

Less than a month after losing a fight with the City Council for money to hire extra cops, Mayor James Hahn once again finds himself immersed in a budget battle.

This time it is with the state and the threatened loss of millions of dollars in grants, subsidies and offsets the city could lose because of an impasse between Gov. Gray Davis and the Legislature in how to cover a $38 billion shortfall.

Hahn's struggles come as he enters the midpoint of his first term as mayor - he was inaugurated July 1, 2001 - facing a restructured City Council and laying the foundation for his re-election campaign in 2005.

With the state in a financial crisis, Hahn has traveled to Sacramento to plead with lawmakers to spare cities - urging Davis' aides to instead triple the vehicle license fee, which they did, and calling for a temporary half-cent sales tax to prevent cuts to local governments.

He has hired a special assistant to help lobby state officials - Kam Kuwata, who was one of the managers of his election campaign and anti-secession campaign - and has been working the telephones to try to convince legislators of the problems that would befall Los Angeles if funding is cut.

``It's a constantly moving target,'' Hahn complained in an interview last week. ``Every day it's the budget du jour, and no one knows what will happen or when it will happen.''

Hahn's personal efforts on behalf of the city are not without their irony.

``If he had worked that hard with the council, maybe he would have gotten the budget he wanted,'' said one council aide, who asked not to be identified.

The recently concluded deliberations on the mayor's proposed $5.1 billion budget ended with him being forced to see his plans for a vast expansion of the Los Angeles Police Department put on hold, temporarily.

And to this day, Hahn remains puzzled by it.

``If you were to talk to any council member, they would tell you their No. 1 priority is public safety and adding more police,'' Hahn said. ``Yet, they put that money aside. I don't understand it.''

The council voiced concern the mayor was undertaking too ambitious a hiring program in adding 320 officers on top of the 400 needed to cover attrition at a time of financial uncertainty.

``I don't question their sincerity, but if you look at the budget we submitted, it was balanced,'' Hahn said. ``We added $31 million in revenue and had $40 million in cuts. But we still have to make this city safe if we are to be successful.''

Some city officials have blamed the attitude of Hahn staffers in budget negotiations for the problem while others say it was up to the mayor to intervene and make sure council members understood his priorities.

``I hope its a one-time disagreement and they can repair their relationship,'' said Richard Lichtenstein, a Democratic political consultant.

``A lot of people have criticized the mayor for not demonstrating leadership. Yet when he tried with the LAPD issue, he was unable to coalesce the votes. Part of it is, I don't think he went out there to explain it himself. What I hope, is he doesn't take this as a step to withdraw and become a caretaker.''

Hahn insists that won't happen - that the setback will be used to refocus his energy and his agenda for the last half of this term.

``He'll have to work at it to improve relations,'' Democratic consultant Joe Cerrell said. ``He already has better relations with the council than (former Mayor Richard) Riordan had.

``We shouldn't put too much emphasis on the budget fight. It was a setback, but not that severe. It will serve as an eye-opener, hopefully, for the mayor and his staff.''

While Hahn has been criticized for being more concerned with potholes than policies, he argues it is his willingness to engage in pothole politics that served him to fight back secession and will help him in the future.

Last week, Hahn visited seven sites throughout the city, either to existing facilities or one planned to serve as a regional City Hall, where people can go to take care of most city business.

He plans to meet weekly, probably over lunch, with individual council members to discuss district problems and how his office can help.

Hahn said he believes he can work with the new council - even with the potential challenge from two members, new Councilman Antonio Villaraigosa and Councilman Bernard C. Parks.

Villaraigosa has said he will not challenge Hahn in 2005, although he did run for mayor two years ago and is being closely watched for what is expected to be an aggressive and ambitious agenda that could steal the scene from Hahn.

Parks, whom Hahn removed as police chief, has been meeting privately with supporters exploring whether to challenge Hahn in two years.

``I can't worry about that,'' Hahn said. ``I know you can't ever eliminate politics, but right now we have to look at what's facing the city.''

Hahn has held a series of private meetings with Villaraigosa on city issues and hopes to use the new councilman's experience in Sacramento and contacts as former Assembly speaker to help the state with the budget.

Likewise, Hahn said he has talked extensively with new Councilman Tony Cardenas, who chaired the Assembly Budget Committee when he was in Sacramento, to help the city.

``These people are smart and talented and know their way around Sacramento,'' Hahn said. ``That will help us.

``And I think there is this time when the new council members will be wanting to make their mark and show what they are doing for their districts. They will be looking for the opportunity to work with anyone here, including the mayor. And I'm looking for ways to work with them.''

Hahn is also looking at creating more housing, working on the economy, and boosting education and literacy.

``The one thing that has stopped us is the economy,'' Hahn said. ``Even though Los Angeles is not being hit as hard as other parts of the country, we're feeling it. When I was first elected, everyone said it would bounce back in a few months.

``Then we had September 11 and the date for recovery keeps getting pushed back further and further. We could be doing a lot more if we had a good economy.''

More jobs are critical, he said. ``It's not so much tax breaks and incentives as it is a safe city, a vibrant city where the arts flourish, where schools are improving. That's what will keep jobs here and bring new jobs here.''

On education, Hahn said he was purposely taking a different course than Riordan, who had variously called for the breakup of the Los Angeles Unified School District and then ran his own slate of candidates to take over the Board of Education.

``If you look at that, you have to look at what happened,'' Hahn said. ``Mayor Riordan worked hard to get his own board elected and now they're all gone.

``I want us to get to a point where the only reason a kid gets on a bus to go to a school is because he wants to because of the program offered. We need more neighborhood schools.''

In the meantime, there are practical political realities to face.

Hahn has already held a number of fund-raisers for his re-election campaign.

``I want to keep this job,'' Hahn said. ``It's a great job in a great city. We have a real renaissance going on, and this is a vibrant, alive city.

``Everywhere I go, people care about their neighborhoods and the city. They're getting involved in neighborhood councils and other issues. It is exciting to see this new democracy take shape even with the growing pains it has.

``People are rolling up their sleeves and getting to work. It's just exciting to be here and witness it.''

Rick Orlov, 213-978-0390

rick.orlov(at)dailynews.com

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While Hahn has been criticized for being more concerned with potholes than policies, he argues it is his willingness to engage in pothole politics that served him to fight back secession and will help him in the future.