Sacramento County’s public safety and social service programs will be harmed if the state advances a proposal to borrow $2 billion from local governments, according to county spokesman Zeke Holst.

The county is planning cuts to close its own $180 million budget gap.

Gov. Arnold Schwarzenegger has proposed borrowing property tax revenues from local governments as one of many ways to address the state’s $24.3 billion deficit. Holst noted that Sacramento County’s portion of the $2 billion would be $32 million.

Lending $32 million in county revenues to the state “would directly impact public safety and social programs,” Holst said. “We are watching the state very closely to see what they are planning to do so that we can be better prepared to adjust our services to our communities and minimize the impact of the loss of services.”

In order for Schwarzenegger’s proposal to be enacted, the state Legislature must approve it with a two-thirds vote. California Department of Finance spokesman H.D. Palmer said it gives Schwarzenegger "no pleasure" to propose to borrow from local governments.

Palmer noted that Schwarzenegger supported local government authority and the 2004 initiative Proposition 1A, which voters approved. That proposition ensures that local governments maintain control over their property and sales tax revenues.

However, the proposition enables the state to borrow the local government funds in a fiscal crisis. The proposition says the state must reimburse local governments with interest within three years.

The governor made the proposal because of the “severe recession,” Palmer said.

The city of Sacramento would also be affected by Schwarzenegger’s plan. Mayor Kevin Johnson said recently that the city could dedicate up to $12 million in “risk funds” to the state. City staffers wrote in a May 22 report that these funds “are reserved to cover city liability settlements over the life of a claimant.”

Sacramento County expects to release its proposed budget Friday, June 5.

Kathleen Haley is a staff reporter for The Sacramento Press.