COMMENTARY ON PUBLIC CONCERNS : New Year’s Wish: Restore Confidence in County Government : Despite some encouraging trends--more jobs, a revived housing market--the bankruptcy and deep suspicions about local leadership make for a gloomy mood.

The most challenging year in Orange County’s recent history is now behind us, but what lies ahead?

Since last December, we have lived through an epic drama that included the loss of more than $1 billion in the county investment pool, the filing of the nation’s largest municipal bankruptcy, resignations and indictments of several county officials, funding cuts for local governments, uncertainties about services for local residents, voter rejection of a recovery sales tax and, finally, approval of a recovery plan.

How well have we fared through all of this trauma? What do we need to do for a better 1996?

The 1995 Orange County Annual Survey, our annual poll of 1,000 households, zeroed in on the bankruptcy’s impacts on residents. We found that fears about the financial crisis and a loss of trust in county government have put residents in a gloomy mood about the economy, their personal finances and the housing market. Other recent polls confirm these general trends.

Orange County holds too much promise--and has too much at stake--to allow a downbeat mood to cloud our future. With a recovery plan now in place, local officials must work on restoring confidence in the county, and especially in county government. Here are some of the concerns about the bankruptcy that surfaced in our survey this year:

* Residents declared the financial crisis to be the county’s most urgent issue, ahead of crime, the economy and traffic. Seven in 10 called the bankruptcy a “big problem.� One in four said they were personally affected by the bankruptcy, and another quarter greatly feared its future effects.

* Confidence in local government took a big hit. Only four in 10 rated the current system of cities and counties sharing power as effective, which is a dramatic decrease from a decade earlier. Two in three residents want more power transferred from the county to their cities, which is up significantly from past surveys.

Sadly, the focus on the bankruptcy and the loss of faith in county government have been dark clouds overhead all year, obscuring the economic recovery that had been underway.

* Residents’ perceptions of the county’s economy have deteriorated this year. Fewer than one in five now give the local economy an excellent or good rating, while three in 10 say it is in poor shape. These ratings are back to recession-era lows, even though jobs and the economy are in plus territory.

* Consumer confidence has stalled after making its greatest leap of the decade in 1994. Many residents worried about the bankruptcy’s effects on their personal finances, pushing local consumer confidence levels below the national average. This means lost opportunities for robust economic growth.

* Optimism about owning a home in Orange County has dimmed. Only half of current homeowners and four in 10 renters say buying a home in Orange County is an “excellent� or “good� investment, down sharply from a year ago. Those affected by the bankruptcy are especially negative.

What’s next as Orange County digs its way out of the financial rubble? Residents are way past the point of thinking their county government can return to normal. They want sweeping changes to carry them out of the crisis and into a better future.

According to our survey, local residents want to see a chief executive officer running county government while the Board of Supervisors is relegated to part-time duties. They want more private companies providing county services. They want term limits for supervisors, and no additional members. And they still would rather elect the county treasurer, clerk and auditor than have such officials appointed.

Many of these changes are found in the county charter proposal that will appear on the March ballot. If voters focus on the charter’s calls for more privatization and less power for the supervisors, the measure has a good chance of winning. Voter approval could boost confidence in county government and provide a clear signal that reform is underway.

As we sort through the charter proposal and other ideas for change in 1996, we must move quickly. Even while local leaders have been mired in contemplating the bankruptcy, the county has been racing toward the year 2000. For one thing, the county keeps growing--adding 231,000 residents since the beginning of the decade. Also, crime continues to vex residents, and faith in the police could be the bankruptcy’s next victim if local governments are seen as floundering. Meanwhile, an economic recovery has been underway, with many new jobs added in the past year and more projected in 1996. Hesitation could squander this opportunity.

Only by restoring trust in county government can we ensure that the rest of the 1990s will offer solid job growth, consumer confidence and a renewed sense that owning a home in Orange County is a good idea after all.