O.C. Planning Director to Quit Amid Budget Deficit, Layoffs

Orange County’s beleaguered planning director, faced with a financial crisis in his department that has resulted in layoffs and a proposed increase in building permit fees, announced Friday that he will retire.

Thomas B. Mathews, 59, is stepping down as the county grapples with how to bring the department’s budget into balance.

Over the last six months, the department has spent at least $8 million more than it took in, and officials said it is operating at a deficit of up to $1 million a month.

Mathews’ last day is Jan. 9, when 39 of the 200 employees in his department will lose their jobs.

The Planning Department’s financial woes have their roots in a sharp decline in development fee revenue over the last few years as the local economy cooled down. Planners wrongly predicted building would pick up, and critics say they didn’t do enough to trim costs.

In announcing Mathews’ exit, County Executive Officer Michael Schumacher released an “action plan” Wednesday to reorganize the department, including an internal audit of its budget procedures.