L.A. projects $1 billion deficit in 3 years; Service cuts, privatizations and dept. closures likely

[marmar]

from the LA Times:



L.A. analysts project $1-billion budget gap by 2013
The dire forecast comes a day after the city's credit rating was downgraded. Finance officials recommend service cuts, department closures and privatization of city property -- but no tax hikes.

By Phil Willon

November 26, 2009


Los Angeles could face a $1-billion deficit by the time Mayor Antonio Villaraigosa wraps up his second term in 2013, a dire forecast driven primarily by escalating employee pension costs and stagnant tax revenues, the city's top budget analyst said Wednesday.

The grim financial outlook came a day after the city's credit rating was downgraded by Wall Street-based Fitch Ratings. That could worsen L.A.'s already precarious financial situation by making it more expensive for the city to borrow money.

City Administrative Officer Miguel Santana told City Council members that if they hope to end L.A.'s incessant practice of spending more than it collects they must make severe, and almost assuredly unpopular, cuts to some existing services and possibly eliminate some departments.

Closing the projected budget shortfalls in the years ahead also will require significant reform of the city employee pension systems, such as creating a lower tier of benefits -- a change that would require voter approval, Santana said.

"None of these solutions are easy," he said. ...........(more)

The complete piece is at: http://www.latimes.com/news/local/la-me-budget26-2009nov26,0,3157165.story

[imdjh]

1. They should sell indulgences at $1million a pop.

Want to build an 8 story house in Beverley Hills that blocks Joan Rivers' view? One million bucks.

Need to get out from under a DUI or domestic battery charge? One million bucks.

Statutory rape? Two million.

Murder? Ten mill should do it.

[madrchsod]

2. "Escape From LA"

[AllentownJake]

3. Markets are going to nucking futs tomorrow