PANEL BACKS HAHN BUDGET MEMBERS INCREASE FOCUS ON QUALITY OF LIFE.

Byline: Rick Orlov Staff Writer

A City Council panel recommended on Tuesday adopting Mayor James Hahn's proposed $4.81 billion budget with only minor changes that would increase what they called quality-of-life services and reserves.

The full council is scheduled to consider the package Monday.

``We are dealing with the issues that we, as council members, hear the most about,'' Councilwoman Janice Hahn, the mayor's sister, said after the 5-0 vote by the Budget and Finance Committee. ``When people complain, it is about issues like unpaved roads, nuisance abatement and street repair.''

In those areas, the committee made the major changes to Hahn's budget - adding 10 miles of unpaved streets and highways, increasing sidewalk repair from 98 to 118 miles, adding funds for such neighborhood traffic control measures as speed bumps, and having a citywide program to pick up bulky items.

Reserves would offset costs for the programs - as well as costs for others, including computers for the City Attorney's Office, more examiners for the Los Angeles Police Department and increasing the reserve fund from $64 million to $104 million.

Mayor Hahn was pleased with the package approved by the committee and the few changes made in it, an aide said.

``The mayor's budget addressed the issues he believed are critical to the city, and he is glad the council was able to find additional money to add to that,'' spokeswoman Julie Wong said.

However, officials cautioned that the work on the budget depends on cuts being proposed by Gov. Gray Davis as he seeks to offset a $23 billion state deficit.

``We could have a long road to go,'' Councilwoman Hahn said. ``We could be asked to pick up some of the state's share.''

Council members said they were pleased with the spending plan and its priorities.

``We are looking at this budget in a citywide context of developing policies,'' said Councilman Nick Pacheco, who chairs the committee.

Councilman Eric Garcetti said it also showed restraint.

``Rather than building up our reserve fund in case of an emergency, we could have just thrown money at programs to try to fight secession,'' Garcetti said. ``I think we are being responsible in funding those programs that are needed and also saving some money.''

Assistant Chief Legislative Analyst Sharon Tso said there was $51 million in revenue not anticipated by the mayor, mostly in either higher-than-expected tax income or in money to be carried over to the coming year.

In addition, an increase in traffic ticket fines will generate $3 million more than expected.