Council OKs $3.9-Billion L.A. Budget : Government: A study of airport as a potential revenue source, a political hot potato, is delayed. The combining of some city and county police services will be weighed.

The Los Angeles City Council gave final approval Tuesday to a $3.9-billion budget for the next fiscal year, an austere spending plan that officials acknowledged could become meaningless if the state follows through with proposed drastic cuts in aid to local governments.

While acknowledging that more cuts and a fundamental rethinking of the role of city government may be necessary, the council delayed a decision to investigate a potential revenue source that has become embroiled in politics--the leasing of the Los Angeles International Airport.

Mayoral candidate Richard Riordan has become a leading proponent of leasing the airport to a private company, a plan he would use to fund more police officers. His rival, Councilman Michael Woo, opposes such a move and questions whether leasing would generate the massive infusion of cash that Riordan contends it would.

The council’s Ad Hoc Budget Crisis Committee had proposed that the council begin examining several major restructuring proposals--including the leasing of LAX--to address the city’s long-term fiscal health. The committee emphasized that it was not recommending leasing the airport but simply calling for an investigation of the various claims.

Council members agreed to look into whether the city could save money by combining some operations of its Police Academy and Crime Lab with the county’s similar units. They also agreed to investigate whether outside contractors could more efficiently handle workers’ compensation claims than the city’s Personnel Department.

But they postponed action on a measure to investigate cost savings at the airport until after the June 8 election because discussion of the measure quickly turned into an emotional debate on the controversial leasing issue.

The budget, effective July 1, continues a hiring freeze in all departments except police, fire and sanitation, and calls for the layoff of more than 100 building inspectors and planning workers. Most of those workers will be transferred to other jobs within City Hall.

The budget also calls for tapping tens of millions of dollars from the Port of Los Angeles, the Community Redevelopment Agency and the city parking meter fund. It also begins charging cellular telephone users the city’s utility users tax, which is expected to generate $4.5 million.

The budget funds the Police Department for 7,900 officers, about 300 more than the current force. It also restores some of the programs Mayor Tom Bradley proposed cutting--including $2.3 million for parks, $1.2 million for libraries, $2.2 million for cultural grants and $3.2 million for after-school programs for latch-key children.

The council voted 10-3 to approve the spending plan, which was then sent to Bradley for his review. Council members Ernani Bernardi, Joan Milke Flores and Mike Hernandez voted against it, saying they did not agree with the spending priorities. Hernandez argued against cutting Building and Safety inspectors, saying his district needs them more than ever.

Councilman Zev Yaroslavsky, chairman of the Budget and Finance Committee, warned that deeper cuts will be necessary if the state proceeds with its proposal to withhold $2.6 billion in revenues from cities and counties and transfer the money to schools.

Yaroslavsky, who was in Sacramento on Monday telling state officials of the city’s budget woes, said cities and counties have formed a united front against the proposed state cuts.

“The state has gone too far this time,” Yaroslavsky said. “The kind of transfers from local governments that they’re talking about are unmanageable.”