Hahn seesaws on Schwarzenegger.

When it comes to his view of Gov. Arnold Schwarzenegger, Los Angeles Mayor James Hahn has performed more flip-flops than a circus acrobat.

In the space of eight weeks, Hahn has changed his tune on Schwarzenegger no fewer than four times.

When Schwarzenegger took office on Nov. 17 and repealed the increase in the vehicle license fee, Hahn was sharply critical, saying that unless the state found the money to refund the cities for this loss, city services and public safety would be devastated.

Then, after a pre-Thanksgiving meeting with the new governor, he sounded more optimistic, saying that the governor promised him that cities would be "made whole."

On Dec. 11, a day alter Schwarzenegger hinted in a CNN interview that he might not restore all the car tax funds to cities, Hahn, shaking with anger, called Schwarzenegger "immoral" for threatening to renege on his promise.

A week later, as the governor announced he was taking unilateral action to restore some of the vehicle license fee money to cities and counties, Hahn heaped praise on the actor-turned-governor. "We haven't seen this kind of bold leadership in Sacramento for a long, long time and we are really grateful for it," he said during a Dec. 18 news conference.

Three weeks later, Hahn had to eat his words yet again after Schwarzenegger released his 2004-05 budget plan, which shifts $1.3 billion in property tax dollars from local governments to schools in an attempt to close a $14 billion budget hole.

"I had no idea this was coming. I am greatly disappointed," Hahn said last week. "Once again the state is balancing its budget on the backs of local government."

Hahn not alone

To be sure, the state budget situation has been very volatile, and with a new governor still learning the ropes, sudden shifts are inevitable.

And Hahn is not been the only one getting caught in the crosswinds. During the Dec. 18 announcement, Hahn was joined by a cadre of local officials, including Oakland Mayor (and former governor) Jerry Brown and L.A. County Sheriff Lee Baca.

"I think this is reflective of Jim Hahn's approach to people," said one local lobbyist. "He believes in the good aspects of people and when they tell him something, he really wants to believe them. Some people who look at this say he's setting himself up for a fall when things don't turn out so rosy."

Hahn himself told an audience of downtown business leaders last week that he was taken aback by Schwarzenegger's 2004-05 budget plan.

"It just goes to show that Sacramento is always one step ahead of us when it comes to funding," he said. "While the governor was promising the vehicle license fee backfill with one hand, his budget folks were preparing this property tax grab of our funds with the other hand."

Reached late last week, Hahn disputed the notion that he showed a lack of political savvy.

"If you're asking me whether I shouldn't have praised the governor for doing what I consider the right thing, my answer is that if someone does the right thing, you say so," Hahn said. "If they do something you disagree with, you say that, too."

Asked whether he should have been savvy enough to see the local revenue grab coming, Hahn said, "Look, I'm going to call things as I see them at that time. Back on Dec. 18, we all left our meeting with the governor with the impression that the state government would not balance its books on the backs of local government. He gave me a personal assurance that he did not want to hurt local government. So I said he was a bold leader for making these commitments. And I stand by that, even today."

Cautionary approach

Not all officials heaped praise on Schwarzenegger for restoring some of the vehicle license fee funds to cities and counties.

L.A. County Supervisor Zev Yaroslavsky, who has long been a pessimist when it comes to Sacramento, was more circumspect in his comments right after Schwarzenegger announced that he was restoring funds to local governments. While praising the governor for not practicing "business-as-usual" politics, Yaroslavsky also issued the following caution:

"Of course there are still things we've got to watch out for next year. What happens if by March 1 the Legislature doesn't find the money to offset this financing for local governments? We could be fight back where we started. Just as important, where will the cuts be made in next year's budget to offset this backfilling of money to local governments?"

Some political insiders say privately that Hahn should have also been cautious. After all, this is not the first time he has seen the consequences of unexpected shifts in revenue streams. As City Attorney, Hahn bitterly fought Sacramento's move 10 years ago to take $3 billion in property tax revenues away from local governments.

For several months now, Hahn has been supporting a statewide initiative that would protect local government coffers from precisely this type of raid. The initiative, which is due to enter circulation next month for placement on the November ballot, would require a vote of the people before any funds now earmarked for local governments can be diverted to Sacramento.

"This latest move by Governor Schwarzenegger was a real sucker-punch for all local government officials," said Megan Taylor, a spokeswoman for the League of California Cities. "It provides the poster child for this initiative."

Schwarzenegger spokeswoman Margita Thompson said that while the state faces a severe fiscal crisis, "everyone is going to have to come in and help, and that includes local governments. Cities and counties are going to have to think creatively about how to make their own governments more efficient."

As for relations with local government officials, Thompson said, "There is still a dialogue between mayors and the Administration. The governor has said he is committed to working with local leaders and that commitment has not changed."

Looking ahead, Hahn said that his recent experience would not alter his belief that he can still work with the governor.

"If Schwarzenegger does make another promise, yes, I'll believe him. He understands what cities do and he understands the importance of public safety. And it's not as if this was the first time I've dealt with him. We worked hard together on his after-school initiative (in the fall of 2002) and he went with me to Japan two years ago."

Furthermore, Hahn said he was still hopeful that the property tax diversion would not occur. "Remember, this is the first budget proposal," he said. "It's not set in stone. The final budget often is quite different."