City falls deeper in debt – (to a total of) about $175 million
The city of Los Angeles’ already dire budget crisis took a turn for the worse Friday, as Councilman Bernard Parks revealed its revenue shortfall hit a staggering $175 million halfway through the fiscal year.
As a result, layoffs and furloughs may be in the works – even for city employees who thought their jobs were protected by a recent labor deal.
Parks, chairman of the City Council’s Budget and Finance Committee, said tax and fee collections were short $75 million in the first quarter and $100 million in the second quarter.
“We have gone deeper into the hole,” he told City News Service.
The city typically receives most of its revenue in the second and third quarters, but not this time, Parks said. “In my judgment, there’s little expectation that you’re going to see this revenue figure turn around during this fiscal year,” he said.
An October labor deal with the Coalition of Los Angeles City Unions shielded its 22,000 members from layoffs and furloughs – but only if city revenues did not fall $100 million short of projections in a single year.
“That threshold has now been reached,” Parks said.
However, the labor deal states that before the city can lay off anyone in the coalition this fiscal year, it must first discuss alternatives with union leaders. The city must also show that it had attempted to raise money by bonding against losses, by securing state and federal funds, and by “scouring all uncommitted general funds.” If layoffs were approved, the city would have to retroactively pay coalition members the 3 percent salary increase it has withheld from them since July.
City officials had previously said only the 5,000 members of the Engineers and Architects Association were vulnerable to layoffs.
Asked how many city employees could lose their jobs, Parks replied: “I have no idea – it’s one of those things that you don’t know you have enough until the budget is balanced.”
City Administrative Officer Miguel Santana – the city’s top budget analyst – reportedly briefed Mayor Antonio Villaraigosa, City Council President Eric Garcetti, Councilman Greig Smith and Parks on the revenue shortfall Thursday.
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Dear Friends…
Just after Jay Handal, Jack Humphrey and I met with CAO Miguel Santana on Thursday, Jan. 14th, we walked out of the CAO’s office and “played tag” with Mr. Santana and members of his staff. They stepped back and let us take the elevator. Jack and I went to the Mayor’s office to continue our involvement in the MAYOR’s Budget Survey. As we approached the Mayor’s reception desk, we met Mr. Santana and his people, again. He was quickly joined by a peculiar group of City Officials, including City Council Members Bernard Parks, Eric Garcetti and Greig Smith. Obviously, they were there to discuss the budget matters with the Mayor. Since the Mayor had not yet been briefed, Mr. Santana could not tell us the details in our just-concluded meeting..
Now, we know. Now, you know. Now, it is YOUR turn.
We knew that another $75 – $100 million had just been identified and added to the previous estimate ($ 98 million). The story (above) in today’s (Saturday, Jan. 16) Daily News gave it more significance. This increase may cause the 22,000 City Coalition employees to lose their protection from lay-offs.
I think we should all become more and more concerned and ask a lot of questions:
#1 – “How could things keep getting worse and worse?”
#2 – “Why do these City Leaders not know what’s going on?”
#3 – “Why haven’t the necessary steps been taken to arrest our progressive deterioration?”
#4 – “What can we do now to get the problem under control?”
#5 – “Will the City go “broke?” have to declare bankruptcy?”
I say “We” because not only are our City Leaders responsible for the sad condition of our City, we are “part of the problem” when we do not learn about it and get involved …
After you read the article, consider it and send us, the Mayor, the Controller, the CAO and your City Council Member(s) a message of your opinion. The 15 NC Budget Reps have an obligation to be a communication link between the NCs (the Public) and our City’s officials but we need your input.
AL ABRAMS; AL ABRAMS ;;;;;;;;;; BARBARA MONAHAN-BURKE ; Dr. STANLEY MOORE ;;;;; REATHA SIMON ;;;;
VINCENT AUTIERO
MARY BENSON
NEODROS BRIDGEFORTH
SCOTT BYTOF
DAVID CLARK
LOREN COLIN
JAY HANDAL
EDWARD JOHNSON
BARBARA MONAHAN-BURKE
TAMIKO NAKAMOTO
SUSAN PRICHARD
DENNY SCHNEIDER
REATHA SIMON
VAS SINGH
DANIEL WISEMAN
CHARLES ZACHARIE
MAYOR ANTONIO VILLARAIGOSA;;
CITY CONTROLLER WENDY GREUEL wendy.greuel@lacity.org;
CAO-MIGUEL SANTANA
CD1-ED REYES; ; ; ;:; ; ;;; ; ; ; ; ;
CD2-PAUL KREKORIAN
CD3-DENNIS ZINE
CD4-TOM LaBONGE
CD5-PAUL KORETZ
CD6-TONY CARDENAS
CD7-RICHARD ALARCON
CD8-BERNARD PARKS
CD9-JAN PERRY
CD10-HERB WESSON
CD11-BILL ROSENDAHL
CD12-GREIG SMITH
CD13-ERIC GARCETTI
CD14-JOSE HUIZAR
CD15-JANICE HAHN
Thank you,
Daniel Wiseman