Thank you, and welcome to the first report on the state of San Diego County in the new millennium.

This is a particularly appropriate time and place to report on the state of San Diego County - here in the first days of the brand new 21st century, and here in a beautiful new high school that stands as a symbol of our community's investment in the future of our children.

I hope each of you had an opportunity, as you came into the auditorium tonight, to explore the exhibits in the lobby. They provide just a taste of the ways County government hopes to take advantage of new technology to serve our customers better, cheaper, faster. These exhibits were organized by the Pennant Alliance, our partners in the precedent-setting Information Technology contract, which I will tell you more about in a few minutes.

Tonight, I am going to share with you some exciting, new ideas for making County government even more accessible and more accountable -- not the least of which is the fact that tonight's presentation, for the first time in history, is being simultaneously webcast on the Internet, making it accessible almost anywhere.

But before I talk about our future, let me get to the historic purpose of this address.

I am proud to report to you tonight that the state of San Diego County in the year 2000 has never been better.

Last month, the San Diego County Taxpayers Association presented their own report on the state of various local government agencies. Here are just a few of the things the Taxpayers Association said about San Diego County government:

"It is hard to believe," the Taxpayers Association said, "that just a few years ago the County of San Diego was on the brink of fiscal insolvency. County employees went without raises for five years. Reserves were all but non-existent."

"In 1994, the Board of Supervisors, all of whom are still in office today, inherited an enormous financial albatross from their predecessors," said the Taxpayers Association.

"The Board decided to take bold action. They hired a CAO from the private sector and embraced private-sector principles as the way out of near bankruptcy. They started a top-to-bottom review of County operations, instituted aggressive re-organization of County management and re-evaluated its priorities."

"Today," said the Taxpayers Association, "this Board is, in our view, the model of creative and innovative local government leadership. They continue to aggressively and pro-actively pursue creative and fiscally responsible approaches to deliver services to the taxpayers."

In 1995, when I last chaired this Board, Pam Slater and I welcomed three new Board members -- Ron Roberts, Bill Horn, and Greg Cox – along with a new District Attorney, Paul Pfingst, and a new Sheriff, Bill Kolender.

We all stood together - the seven of us -- having inherited responsibility from our predecessors for a County government on the brink of bankruptcy.

It was this Board, along with our DA and Sheriff, who had the courage to make long-needed changes in the way County government is organized and delivers services.

And, as the current state of the County clearly demonstrates, we did all that - and more, creating a new County government committed to serving you better, cheaper, faster. All five of us on this Board are extremely proud of what we have accomplished together in turning County government around. We appreciate the recognition offered by the Taxpayers Association and other observers of local government.

Although Board members often disagree on individual issues, as a Board we have been remarkably unified in pursuing our goal of making County government more accountable.

I would like to take a few moments to acknowledge some of the Board members' specific accomplishments in the past year.

Supervisor Greg Cox initiated the Border Development Zone -- SB207 -- to provide badly-needed funding for border infrastructure, so we can take full advantage of the opportunities created by expanding free trade with Mexico.

He, also, led efforts for creation of the South Bay National Wildlife Refuge.

And, with Supervisor Roberts, he is leading the charge to improve and reform our Foster Care system.

Development of the San Pasqual Academy is one part of the Board's efforts to address a long-standing problem in caring for children who are in danger of falling through the cracks in our society.

Our efforts are aided by a dedicated group of citizens who provide temporary or permanent placement for children in need. Two of those citizens are Dorothy and Bob DeBolt of El Cajon.

[Insert De Bolt video clip]

Supervisor Pam Slater took a leading role in securing $2 million for replacement of the County's Animal Shelter on Gaines Street to provide a modern, humane, customer-friendly facility.

She was a leading advocate for collecting development infrastructure fees prior to construction, including $17.5 million for badly-needed I-15 and I-5 improvements. She and I also secured a critical $20 million for completion of State Route 56.

Ironically, it has been the County, not the City, that has made the key funds available for completion of this badly-needed project.

Pam has also been the leading proponent of our nationally-recognized program enabling County employees to purchase computers for home use, allowing them to be more productive and efficient.

Supervisor Ron Roberts and I have initiated planning for a world-class San Diego Regional Cancer Institute, using $100 million of tobacco settlement money.

We are particularly proud of this effort, because it represents what we believe is a most appropriate use of these funds, in contrast to many local governments that are using these funds for programs and facilities unrelated to health care or smoking.

As part of Supervisor Roberts' continuing commitment to the welfare of our children, he has been a leader in the creation of our Critical Hours program that now provides after-school enrichment for over 25,000 San Diego County students, improving their prospects for success and keeping them out of trouble.

His leadership, with Supervisor Slater, in organizing the Smart Growth summits, has begun the process of addressing long-term planning for the expected million-person increase in our County's population over the next quarter century.

Supervisor Bill Horn kept his promise to constituents by lifting the Valley Center Sewer Moratorium this past year.

He also initiated the Donald Kraft public education campaign to help inform local residents who travel to Mexico.

And he helped reduce Lifeflight response times in North County by up to 18 minutes when he provided funding for construction of a much-needed helipad in his district.

My own plate has been quite full this past year, as well.

With Supervisor Slater, I'm proud of the tremendous progress we have made in implementing our Multiple Species Conservation Plan, now recognized as a national model for open space and habitat preservation. To date, we have preserved nearly 74,000 acres of irreplaceable open space for future generations.

I am also proud along with Supervisor Slater to finally create a long-term stable funding source for our County libraries. With Assemblywoman Susan Davis carrying the necessary state legislation, San Diego County was able to restructure growth in property taxes – doubling the library budget without raising taxes or cutting existing programs.

I'm also very proud of the work of our Regional Health Care Advisory Council, which I chair with Supervisor Roberts, which is helping to improve access to healthcare for uninsured San Diegans.

And for me, it has been a very emotional process working with Assembly woman Charlene Zettel and Audrey Amaral, the mother of little Oliver Smith, to pass Oliver's Law, a state law that improves parental access to the records of childcare workers.

[Insert Amaral video clip]

Another problem facing our children and families is substance abuse and methamphetamine is the drug of choice. Although the latest report indicates the number of Meth-related deaths in San Diego County are down, too many children still live in homes where Meth is used, and we still have a long way to go to rid our neighborhoods of Meth houses and other centers of drug manufacture and trade.

While this Board has taken aggressive action to expand the Drug Court and initiate award-winning after-school programs to get people off drugs and keep kids off the street and out of gangs, we must continue efforts such as the nationally-recognized Methamphetamine Strike Force that focuses on prevention, intervention, treatment and interdiction.

As I mentioned earlier, the objective of bringing private-sector management practices to County government was to provide services to the public better, cheaper and faster.

Through managed competition and re-engineering projects, including fleet maintenance, parks and recreation, and workers compensation review, we have saved taxpayers over $34 million in the past year.

Unlike some other local agencies, we have addressed head-on the problem of deferred maintenance, developing a multi-year Major Maintenance Program. By June 30th, we will have eliminated all high-priority deferred maintenance in County government facilities.

We've been on the front lines of welfare reform here in San Diego County, recognizing that dependence on welfare is not only costly to taxpayers, but also destructive to the human spirit.

With that in mind, we have moved over 35,000 families from welfare to work, saving taxpayers nearly $500 million, and restoring confidence and self-respect. Shirley Hernandez is just one example of what that progress means.

[Insert Hernandez video clip]

Welfare reform has a positive impact on more than just the former recipients. Here is Larry Fitch, President and CEO of the Workforce Partnership, on the impact of welfare reform on our local economy.

[Insert Fitch video clip]

A well-run business sets clear budget priorities. For this Board, public safety has always been at the top of our list. To that end, we've added 500 deputies, 2,000 new jail beds, a new central jail and funded a new juvenile jail.

Crime is down a remarkable 40%. For that, we all want to thank our Sheriff, Bill Kolender, and the Deputy Sheriffs – the men and women who put their lives on the line every day to keep our families safe.

Well-run businesses establish budgetary reserve funds to prepare for unanticipated needs. Unfortunately, many local government agencies have failed to follow this prudent practice.

In contrast, County government has gone from having no significant reserves in 1993 to building a healthy $300 million reserve this year, equal to over 10% of our General Fund expenditures.

And, perhaps most telling, the County's credit rating, which determines how much interest we pay on bonds, has been upgraded to A+, an indication that independent bond rating agencies recognize our progress in making County government healthy and sound.

When we talk about restructuring major government organizations, we can't overlook another impressive turnaround that has occurred here in San Diego. I'm referring to the re-structuring of the Navy's operations under the leadership of Admiral Ronne Froman. Although Admiral Froman is in Washington tonight, she is with us in spirit.

[Insert Froman photo]

One of the most exciting and important initiatives this Board has pursued as part of managed competition was the decision to seek private-sector partners to supply information technology and telecommunications services for County government.

This is one of the largest private contracts in the history of local government. The partner we selected, the Pennant Alliance, is replacing over $180 million in obsolete equipment with state-of-the-art, world-class technology.

The Pennant Alliance is a partnership among leading technology corporations -- Computer Sciences Corporation, Science Applications International Corporation, Pacific Bell and Lucent Technologies.

We are extremely pleased with the Pennant Alliance's progress to date, including tonight's presentation, which showcases just a few of the many new resources becoming available.

I want to give special recognition tonight to Richard Jennings and Scott Sharpe from CSC, and Bill Roper and Dick Eger from SAIC, along with their many talented and dedicated employees, for the tremendous work they are doing in making this groundbreaking effort a success.

[Ask Jennings, Sharpe , Roper and Eger to stand]

But we on the Board never lose sight of the primary reason for IT outsourcing - so we can serve our customers -- the taxpayers of San Diego County – better, cheaper and faster.

An example of how this technology can bring County government closer to the people it serves is the webcast of tonight's speech. In addition to giving citizens easier access to the deliberations of the Board, the web can enable our constituents to express their views and get answers to their questions immediately, in the comfort of their own homes.

During tonight's speech, participants in the webcast are being polled on several policy-related questions. Their responses are available as I speak tonight. Imagine the implications of this application for future policy-making.

But the potential of these technologies goes far beyond accessibility to public meetings and presentations. Over the next two years, dramatic changes will occur in the way County government utilizes technology. Improvements will come in three phases, all focused on providing County services more efficiently and effectively.

In the first phase, we will replace most of our technology infrastructure, including new telephones, a new network and new desktop computers. Reliability, speed, customer service, training and time to fix problems will improve by orders of magnitude, giving County workers the ability to provide better, faster service.

In the second phase, our major internal support systems will be replaced with an integrated administrative system. Functions will include payroll, human resources, accounting, property tax, and performance management.

In addition, data from many of our current business systems will be tied together. Data will be entered once at the source and shared by all, and the interface to all systems will be an Internet web browser. Staff time and money saved by these efficiencies will be used to enhance front line services.

The third phase involves providing an Internet delivery channel for every County service where it is possible. The County already has an award-winning web site offering such services as on-line permitting, payment of property taxes, and animal lost-and-found.

These on-line services will be expanded to cover every service that can be handled on-line. This will enable San Diego County to become the first truly e-government.

Residents who use the Internet will avoid driving, parking and waiting in line. For those who choose to continue using existing delivery channels, more front-line staff time will be available to serve them.

But, what about the members of our community who do not now have access to computers, the Internet, or the "information highway?" What is being done to make it possible for everyone in San Diego County to gain access to information technology – and training on how to use it?

By awarding the County's IT outsourcing contract to the Pennant Alliance, we chose a team of corporations that believes in giving back to the community. As part of its contract, the Pennant Alliance has established the new San Diego Futures Foundation – with the mission of working to bridge the "digital divide" in San Diego County.

The Futures Foundation is committed to helping the broadest range of county residents gain access to up-to-date computer hardware, software, Internet connectivity, and IT training. The Futures Foundation places special emphasis on helping schools, small businesses, minorities, low-income residents, and the technologically disadvantaged.

In addition, this technology offers us the ability to link the 18 cities and dozens of other government jurisdictions in San Diego County together, making it easier for local government to work together -- all part of our Board's commitment to serve taxpayers better, cheaper and faster.

As we replace current, antiquated computer applications with web-based systems, many functions that are provided different ways by different departments will be integrated.

This technology will allow us to realize Health and Human Services' vision of "no wrong door," -- integrating all information about people who depend on the County's safety net.

For example, an unemployed mother and her sick child, seeking health care, can also be linked with job training programs, an employment counselor and childcare - all from one location.

It will also allow us to integrate law enforcement data so that information flows automatically from the Sheriff to the District Attorney, the Courts, the jail system and Probation.

Programs offered on the County Television Network will be accessible to whole new audiences via the Internet.

A small businessman wanting to file a fictitious name statement will be able to do the paperwork at his place of business, not have to close his doors and drive to the County Recorder's Office.

A resident seeking a book in the public library will be able to search our entire collection and order a title on-line.

We will be able to link Adult Protective Services and Child Protective Services to ensure better protection for both seniors and young children from abusers.

We will be able to use the Internet in County libraries as a catalyst to bring together senior mentors and young students in one-on-one tutoring programs to promote literacy and enrich young peoples' lives.

Again, this is all part of our commitment to serve taxpayers better, cheaper and faster.

Internally, information technology will enable us to improve security and reduce fraudulent transactions, while giving workers fast and easy access to the information they need to efficiently perform their work.

Not only will this increase efficiency, it will also improve job satisfaction for our employees, as they are able to do a better, more thorough job of meeting your needs.

An example of this technology was demonstrated as some of you came in this evening when we took your name and fingerprint. As you leave tonight, we will be giving you a sample "smart card" that has your fingerprint encrypted on it. It is the same kind of card that County workers will be using to access various County data bases from satellite kiosks.

While there are numerous reasons for pride and optimism in the state of San Diego County tonight, there are also a number of serious challenges on our horizon, and I would like to spend just a few moments discussing some of them.

Perhaps our biggest challenge in the next several years is to meet the transportation needs of a rapidly growing population.

Residents throughout the County are justifiably upset with growing freeway gridlock and the fact that there is no clear solution in sight.

Much of the problem stems from a transportation planning process at SANDAG dominated by parochial special interests.

As the Union-Tribune said in a recent editorial,

"All too often, SANDAG decisions are determined by parochial, tit-for-tat trade-offs - as in, `I'll vote to widen a road in your city if you'll vote to extend a trolley line to mine.' Though SANDAG has been studying growth and traffic congestion in the county for years, it doesn't appear anywhere close to a regional solution on either," said the Union-Tribune.

I say, "Amen!" In my district, this irrational approach to decision-making has left desperately-needed road improvements without funding, including the widening of State Route 67, a notorious bottleneck and fatality-hazard, completion of the State Route 94/125 Interchange, completion of State Route 52 to State Route 67, widening of I-8 between State Route 67 and Los Coches Road, and the "poster child of smart growth" -- State Route 67/Bradley Avenue Interchange, which is strangling the creation of 2,800 new jobs at Gillespie Field.

In the coming year, we need to support proposals to restructure this antiquated decision-making process, including the proposal by State Senator Steve Peace for a directly elected board unencumbered by the parochial pork-barrel issues that currently hamstring SANDAG. Senator Peace's proposal consolidates six bureaucracies, takes control out of the hands of bureaucrats and puts accountability back in the hands of the taxpayers – the people who pay the bills! I will ask the Board next Tuesday to appoint a subcommittee to work with Senator Peace to refine his proposal and work for its passage.

But restructuring alone will not solve our transportation problems. A big part of the problem is that, as a region, we are not getting our fair share of transportation dollars.

The San Diego region generates about $500 million per year in Federal and State gas taxes at the pump. Only 50% of the $16 billion in state transportation dollars, contributed by California motorists, are actually spent on transportation projects. And, Washington keeps six cents out of every gas tax dollar generated here in San Diego County. If state and federal legislators are serious about wanting to solve our infrastructure problems, they will work to keep these transportation dollars at home, addressing the problems of the citizens who pay the taxes. I will soon ask the Board to lead efforts aimed at recovering these lost funds for the benefit of San Diego taxpayers and badly needed transportation projects.

And, we must join Assemblywoman Zettel and other state legislators and go after at least $1 billion of the state's surplus, which could mean $84 million more for projects in the San Diego region.

The assignment of new area codes is another example of federal agencies ignoring the legitimate concerns of local residents.

Lost in the debate over imposition of the controversial new 858 area code is the fact that there are millions of unused telephone numbers that could alleviate the need for new area codes. According the North County Times, there are as many as 145 million unused phone numbers within existing area codes in the state. With two new area codes slated for imposition this summer – 935 and 442 – it is time to stop punishing consumers and put responsibility where it belongs.

The Federal Communications Commission has had a strangle-hold on state and local authorities for far too long. I will ask the Board to join with other local governments and the California PUC to challenge the FCC to change the rules and expand options to allow technology based area codes, local number portability for cell phones (wireless) and to immediately release the enormous stockpile of unused numbers within existing area codes. These actions will dramatically increase the availability of phone numbers preventing any more "splits."

Another major challenge facing our region is the number of individuals and families who have no health insurance. These people not only risk catastrophic financial consequences from injury or illness, but they also represent a huge cost to County taxpayers when they end up seeking indigent care.

In the coming year, I will work with the state and local providers to develop pooled "group" insurance rates for one-person businesses and work to expand our Healthy Families program. We are working through Healthlink and other programs to enroll 50,000 uninsured children into health care by the end of this year.

A major category of those without health insurance are "care-givers" - those that provide services to the elderly, disabled and children. These people provide critical public services, yet many of them do not have health care themselves.

This year, I will propose a plan called "Caring for Care-Givers" to provide health care coverage for foster parents, child care workers and in-home support services workers.

Along these same lines, I commend Governor Davis for his proposal to give elder care-givers a $500 tax credit. I think we should take this proposal a step farther and extend the tax credit to child care providers and foster parents, as well.

And there is more the County can and should do regarding quality child care. In the next several weeks, I will propose creating a mobile van to visit child care centers to provide on-site assistance and access to training programs for child care workers, including those working with children who have special needs. The van will also provide voluntary health screenings for children.

As we continue our efforts to make welfare a temporary safety net, not a permanent lifestyle, two of the biggest obstacles for welfare recipients seeking employment are childcare and the lack of transportation. While continued childcare funding is critical, transportation is essential. It can take as long as two hours every morning for a single mom to get her child to childcare and get to work while using public transportation. This year, along with Supervisor Cox, I will pursue a cooperative program with the DMV, local auto dealers, Calworks and insurance companies to get recipients into cars and on the road to self-sufficiency.

I am also looking forward to working with the City of Santee and our labor partners, the Service Employees International Union, to secure funding for a new County-owned and operated Edgemoor Hospital as a part of a comprehensive Health Campus for seniors.

With a growing senior population, and so many kids in need of an extended family and positive role models, I will propose a countywide "Intergenerational" program to link seniors with kids to include a Volunteer Service Credit Program, Senior Mentor Program and a Teen and Elderly Suicide Prevention Program.

Both kids and seniors can learn from each other -- and it's a way of connecting the past with the future, children teaching seniors the world of technology; seniors teaching children basic skills, core values and promoting the development of good character. I want to commend the community of Ramona for developing and supporting this innovative concept with their "Intergenerational Community Campus" – a first in the region!

[Recognize Jack Rogers, Dan Vengler, Dave Grant, Elyse Kuhn, Hal Gansert.]

[Insert video clip from Ramona library]

Another major challenge confronting our region is to ensure the continued health and vitality of our local economy.

To encourage the growth of small businesses, which are the backbone of our local economy, we have already eliminated over $5 million in taxes and fees, including complete elimination of the business license tax.

Right here in the City of Santee, we are working to create a high-tech business campus on 106 acres in the Santee Town Center.

To further the enormous potential of cross-border trade, I will work to expand the model created by the East County Economic Development Council with the Connectory to include Mexican companies in our data base, strengthening our economic ties and creating new opportunities for businesses on both sides of the border.

In an effort to further reduce crime, Supervisors Horn and Cox have initiated efforts to combat gang activity. For example, the Sheriff's Gang Supression Unit has been very successful in North County in reducing gang violence and gang crimes. It's time to send a strong message regionwide to the county's 8,000 gang members and 80 gangs. To that end, I will ask my colleagues to support a $1.5 million expenditure in next year's budget to expand the Sheriff's Gang Supression Unit countywide.

Last, but certainly not least, the County must continue to provide leadership in preserving our natural resources to ensure that future population growth doesn't destroy the amenities and quality of life enjoyed by current residents. We have a sacred trust to pass on to the next generation a livable, economically viable and healthy San Diego County, and we will.

To that end, I join with other members of the Board in urging voters to approve Proposition 12 on the March ballot, which will provide at least $111 million for parks, wildlife preserves and open space in San Diego County. Prop. 12 is supported by a broad coalition of business and environmental groups committed to preserving San Diego County's unmatched quality of life.

The bottom line in all these initiatives and in everything this Board has accomplished in recent years, is our commitment to making San Diego County government a model of efficiency, innovation and accountability to taxpayers.

As I've mentioned several times tonight, our commitment to you is to make County government serve you better, cheaper and faster.

I hope all of you leave here tonight sharing my pride in the tremendous progress we have made toward that goal, and my enthusiasm for the incredible opportunities that are still in front of us.

We intend to do everything in our power to keep San Diego County government service "the model of creative and innovative local government leadership" described last year by the Taxpayers Association.

Thank you, and good night.