Municipalities girding for possible Schwarzenegger squeeze.

LOCAL governments statewide are bracing for a showdown with Gov.-elect Arnold Schwarzenegger over his intention to repeal all or most of the vehicle license fee, or car tax.

Last week, Schwarzenegger wouldn't say whether he wanted to repeal the entire fee or just the part of it that was reinstated this summer to help bridge the budget gap, after the original car tax was rolled back by two-thirds in the mid-1990s.

While the $4 billion to $6 billion at issue technically affects the state budget, local leaders fear they will ultimately bear the brunt of any rollback in the form of funding cutbacks from the state. L.A. County alone stands to lose up to $1 billion in annual funding.

"When he said 'I want to kick some butt in Sacramento,' I hope he didn't mean he intends to kick city and county butt," said Los Angeles County Supervisor Zev Yaroslavsky. "That's exactly what he'd be doing if he cuts the car tax and doesn't come up with replacement revenues. And frankly with the budget deficit they have up there, I don't see what replacement revenues there are in Sacramento."

Currently, local governments receive the lion's share of car tax revenues, which they then use to fund police, fire and other services.

The arrangement dates back to the mid-1990s, when then-Gov. Pete Wilson and the Legislature first cut the car tax and promised to "backfill" city and county governments with an equivalent amount from the state's general fund. If there wasn't enough money to pay for the backfill, the Wilson-era measure also provided for an automatic restoration of the car tax.

In the past couple of years, city officials have lobbied fiercely against diverting the backfill to meet the growing state budget gap. In May, Gov. Gray Davis proposed a budget that would do just that, allowing the automatic trigger to kick in to restore the tax, effective Oct. 1.

Of course, the hike in the car tax became a major issue in the recall campaign, with every major recall replacement candidate pledging to end or amend the car tax law.

Now that Schwarzenegger has promised to cut the car tax, the question is how, or whether, the backfill earmarked for local governments will be maintained. Next year's budget deficit is projected at between $8 billion to $10 billion.

"Arnold Schwarzenegger did say in the campaign it was not his intention to cut local government," said Megan Taylor, spokeswoman for the California League of Cities. "We're going to work with all our coalition partners in the public safety community to hold him--and the Legislature--to that promise."

Westside Scramble

Have recall withdrawal? There's always another campaign down the road--even if it happens to be 18 months away.

Consider the primary election to replace term-limited L.A. City Councilwoman Cindy Miscikowski, perhaps the last open City Council seat until 2009.

Two candidates have been considered top contenders for the post: former L.A. City Controller Rick Tuttle and Westside Area Planning Commission chair and community activist Flora Gil Krisiloff.

But now another prominent Westsider is considering throwing his hat into the ring: Adelphia cable television host Bill Rosendahl. Reached last week while manning a Venice polling station, Rosendahl said he was looking at running and would make a decision by early March.

"I've lived in the district for 26 years and worked in the local cable industry for the last 22 years," Rosendahl said. "Now the question I'm looking at is whether I will be more effective for the community and the city doing what I've been doing or serving as a public official."

Miscikowski's planning deputy, Kristen Montet, who was also considering a run, has decided instead to take a position in the real estate division of the Los Angeles Unified School District.

"This was a very good opportunity to do what I've wanted to do for quite some time, help build much-needed schools in L.A., Montet said, adding that she hasn't completely ruled out a run for the seat.

Sources said Montet decided to take the LAUSD job after learning that Miscikowski probably would not endorse her candidacy. Miscikowski said in a statement last week that she has not yet decided whom to endorse.

Another name circulating is state Sen. Debra Bowen, D-Redondo Beach, whose district includes Venice and Mar Vista.

Bowen spokesman Evan Goldberg said she's focused on filling the remaining three years on her term and has not stated any intention to run for the City Council.

Tight Squeeze

The most powerful people at the election night victory party for Gov.-elect Arnold Schwarzenegger were not the movie actor-turned politician and his entourage but L.A. city fire marshals.

There were at least 200 television and still-camera tripods taking up platforms along two entire walls of the Century Plaza's ballroom, not to mention scores of print journalists and hundreds of campaign volunteers and donors and assorted VIPs inside.

Just before the polls closed at 8 p.m.--and more than two hours before Schwarzenegger gave his victory speech--the fire marshals dosed down all access to the ballroom. Escalators leading down to the floor were shut down and guards posted to ensure nobody got within 50 yards of the ballroom. Dozens of journalists and hundreds of guests were stuck on the outside.

"I just stepped out to go to the restroom and I can't back in," was a common refrain.

By the time Schwarzenegger gave his acceptance speech, several hundred people were crowded around two giant television screens in the upstairs bar. After he finished, scores congregated around the escalators, waiting for the signal to be given so they could get in the ballroom. But it wasn't until Schwarzenegger left the building half-an-hour later that people were allowed to enter the ballroom.

By that time, most people had already left and the biggest excitement in the room came from the popping of dozens of balloons.

Staff reporter Howard Fine can be reached by phone at [phone], ext. 227, or by e-mail at [e-mail].