WHEN THE VOTERS PASSED PROPOSITION 13 BY A TWO-TO-ONE MARGIN ON JUNE 6, 1978, THEY REDUCED THE STATE'S REVENUES FOR THE COMING YEAR BY ALMOST $7 BILLION. POLICE AND SHERIFF'S DEPARTMENTS HAD TRIED TO CONVINCE THE VOTERS THAT PROPOSITION 13 WOULD MEAN MASSIVE LAYOFFS OF LAW ENFORCEMENT PERSONNEL, AND AT FIRST TOOK THE VOTER'S MANDATE AS AN INDICATION THAT THE PUBLIC DID NOT CARE ABOUT LAW ENFORCEMENT. HOWEVER, A CLOSER LOOK REVEALED THAT VOTERS WANTED MORE PROTECTION FOR LESS MONEY. EMERGENCY LEGISLATION DRAFTED IN THE MONTH BEFORE THE TAX CUT WENT INTO EFFECT GRANTED LOCAL GOVERNMENTS A REPRIEVE, REDUCING THE REVENUE DROP TO 40 PERCENT. THE EMERGENCY 'BAIL-OUT' BILLS GAVE POLICE AND FIRE DEPARTMENTS TOP PRIORITY, BUT THE BASIC MORE-FOR-LESS DILEMMA REMAINED. IN ADDITION, THE BAIL-OUT LEGISLATION KEPT LEVELS OF PROTECTION AT THE STATUS QUO, GIVING THE PUBLIC THE IMPRESSION THAT THE TAX CUT HAD HAD LITTLE IMPACT ON LAW ENFORCEMENT. IN OCTOBER 1978, SHERIFFS AND POLICE CHIEFS CONVENED IN LOS ANGELES TO SHARE THEIR THOUGHTS REGARDING LAW ENFORCEMENT SURVIVAL AFTER BAIL-OUT LEGISLATION EXPIRES. A COMMON CONCERN WAS THAT, ONCE EMERGENCY FUNDS RUN OUT, POLICE SERVICES AND FUNCTIONS OTHER THAN PATROL WILL BEGIN TO DISAPPEAR. ONE POLICE EXECUTIVE'S VIEW THAT PROPOSITION 13 IS AN OPPORTUNITY TO EXPLORE INNOVATIVE MANAGEMENT PRACTICES WAS THE EXCEPTION. MOST ADMINISTRATORS EXPRESSED DOUBT THAT SERVICE LEVELS CAN BE MAINTAINED. INDICATIONS OF LOW MORALE AND ANXIETY AMONG LAW ENFORCEMENT EMPLOYEES WERE CITED, AS WERE PRESSURES BY POLICE UNIONS TO FIGHT AGAINST PROPOSITION 13. IN GENERAL, THE CONFEREES REFLECTED THE UNCERTAINTY SURROUNDING THE FUTURE OF LAW ENFORCEMENT UNDER PROPOSITION 13. THE FEW CONCRETE PROPOSALS FOR COPING WITH THE SITUATION--SERVICE CONTRACTING, SPECIAL ASSESSMENTS FOR BUSINESS DISTRICTS, EMPLOYMENT OF RECRUITS ON PROBATIONARY SALARIES, CONSOLIDATION, CIVILIANIZATION--MET WITH LITTLE ENTHUSIASM. SOME OFFICIALS EXPRESSED CONCERN THAT CONTROL OVER LAW ENFORCEMENT WAS SLIPPING INTO THE HANDS OF THE STATE. STATE-LEVEL REPRESENTATIVES, NOTING THAT THE GREATEST IMPACT OF PROPOSITION 13 MAY BE STIFF COMPETITION FOR STATE FUNDS AMONG CITY, COUNTY, AND STATE AGENCIES, URGED CONFEREES TO BE MODERATE IN THEIR COMPETITION WITH OTHER CITY AGENCIES BUT ALSO ADVISED THE LAW ENFORCEMENT ADMINISTRATORS TO IMPROVE THEIR BUDGETING SKILLS. THE STATE REPRESENTATIVES PREDICTED THAT BAIL-OUT LEGISLATIN WOULD AGAIN BE PASSED IN 1979 BUT URGED POLICE OFFICIALS TO EVALUATE THEIR OPERATIONS OBJECTIVELY AND SYSTEMATICALLY SO THAT THE PUBLIC WILL NOT BE FORCED TO RESORT TO MORE PROPOSITION 13'S IN THE FUTURE. (LKM)