ORANGE, California -- September 11, 1995 -- The
County Transportation Authority (OCTA) board of directors Monday
approved the joint agreement of the href="chap11.orange.html">County of Orange Bankruptcy
The consensus plan calls for every agency represented by the
Orange County Investment Pool (OCIP) and the County to share in the
financial burden of the recovery. OCTA will play a key role in
meeting the County's financial needs for bankruptcy recovery.
Under the joint agreement, OCTA will experience an annual
deficit of $15 million, following a first year loss of $38 million.
The loss will significantly affect te bus system, according to an
OCTA report discussed Monday. An independent review from the State
Legislative Analyst's Office agreed that bus riders will be
The consensus plan builds on other recovery documents the League
of Cities, Family of Governments, and County financial advisors
developed. The plan also culminates weeks of intense discussions
and negotiations mediated by the Orange County Business Council.
The joint agreement encompasses the major points of the
consensus plan approved in concept by the OCTA board on Aug. 28.
The consensus recovery plan transfers $38 million a year for 15
years from OCTA to the County of Orange beginning July 1, 1996. The
plan also calls for transfer of $23 million of the County's $33
million gas tax funds to OCTA for 16 years beginning July 1, 1997.
In the first year, the loss to OCTA will be a full $38 million.
The plan contains several additional factors based on further
discussions among the Orange County Business Council, the OCIP
Committee, the cities, and County advisors and staff. Those changes
The joint agreement requires that its funding transfers be
approved with legislation. The proposed bill is scheduled for
conference committee hearing.
The committee is comprised of Senators Lucy Killea (I-San
Diego), Richard Polanco (D-Los Angeles), and William Craven (R-
Oceanside), and three members from the Assembly, Doris Allen (R-
Cypress), Brian Setencich (R-Fresno), and Richard Katz (D-Los
The Senate and Assembly must approve the bill no later than
midnight on Friday, Sept. 15. Gov. Pete Wilson then has 30 days to
sign the bill.
Once Gov. Pete Wilson signs the legislation, OCTA will begin
work on a detailed analysis of bus operations and return with an
update within 120 days. At that time, the OCTA board of directors
will face several key policy decisions such as refilling the $15
million through cutting other programs or how to absorb the loss in
bus operations service cuts.
Elaine Beno, 714/560-5571