Monday, October 16, 2017
L.A. City Budget Crisis
By Sentinel News Service
Published May 31, 2012


Los Angeles City Hall

Recently, the Los Angeles City Council passed a $7.2-billion budget as the council members agreed to wait until next year to decide if pending layoffs are necessary, in addition to which departments would suffer the most layoffs.  At this point, no new positions will be filled.

According to the city’s Budget and Finance Committee, there might be some revenue coming from the governor’s elimination of the Community Redevelopment Agency, but it’s not a sure thing.

After the vote, Mayor Villaraigosa said he would review the budget, to make sure that public safety is maintained and some of the other services remain adequate to meet the need of the residents, such as maintenance services, libraries and so on.  For the most part, the council members went along with the Mayor’s proposals which included raising the fee for parking tickets and people who park illegally in spaces designated for the disabled.

The Mayor issued the following statement regarding the budget:

“Today, City Council helped put us in a better position to take advantage of future improvements in the economy by largely agreeing to our proposed budget. The budget will reduce the City’s structural deficit while continuing to protect core services. Approximately two-thirds of the cuts included in this budget are permanent reductions to the City’s structural deficit.

“Public safety remains a priority and we will continue hiring police officers and restore funding to the Fire Department, while expanding services including street maintenance and libraries. Angelenos deserve a world-class city and this budget ensures that we will remain on firm financial footing, even during difficult economic times. I will review the final budget and any

changes made between now and when it crosses my desk.”

Council President Herb Wesson (CD-10) issued the following regarding ‘Adoption of City Budget’:  “This is the first budget of my Council Presidency, and I’m pleased that despite the problems of the economy, we were able to avoid layoffs while being in a position to preserve vital city services.  Our city still faces challenges, but it was gratifying to see how well we worked together.”

Councilmember Bernard Parks (CD-8), regarding the Los Angeles City Budget: “The fiscal year 12-13 continues to incrementally reduce structural deficit and reduce the number of personnel within the City of Los Angeles.  This structural deficit will take many years to resolve and have a major impact on the community and there will be reduced services in many areas.  As we move forward in this fiscal year, several sensitive areas to monitor will be the 16 billion dollar deficit at the state level, the additional property tax caused by the dissolution of the CRA and the federal funding of paramedic services.  If these three areas don’t produce accepted revenues then additional cutbacks will have to occur. Additional sensitive revenue sources are sales tax and property tax primarily driven by the unemployment rate and foreclosure market.  As we go forward the city must continue to look at ways to reduce pension, health care and personnel costs to eventually eliminate its current structural deficit.”

Councilmember Jan Perry (CD-9) stated: “This budget reflects another tough year. We had to find $237.27 million in savings to address this year’s deficit. While this is almost a $100 million less than last year, we have made the most of the funding to ensure that we maintain core services like police and fire. We also eliminated over 400 vacant positions. The measures we have taken these past fiscal years have significantly reduced our workforce, by eliminating vacant positions,” said Councilwoman Jan Perry. “The city continues to be impacted by the recession. We are beginning to see some improvement in the economy and will continue to fund our core city services. We have restored $40 million to the Fire Department. The city continues to advance major projects like the new Farmers Field and Convention Center expansion that will provide nearly 20,000 jobs and major new tax revenue to the city. I will continue to strive to bring economic development and job creation as that is the way to fight our way out of the recession.”



Categories: Local

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