This Is Going To Be Brutal’: City Of Los Angeles Faces $400-$600 Million Shortfall

Los Angeles is dead broke.  It has a crime wave, massive homelessness and businesses closing or leaving town.  The schools are failures—with thousands of students ignoring them.  The streets are the worst in the county, while the police are afraid to get out of bed each day for fair they will go to jail for arresting the wrong people, per the racists.

“City budget analysts released a report on Friday detailing how COVID-19 has knocked revenues even lower than projected, at the same time that unexpected costs have driven spending up and the city has agreed to defer planned furloughs for civilian employees. The projected gap for the budget year that began July 1 has grown to $400-$600 million, according to City Administrative Officer (CAO) Rich Llewellyn.

The City Council’s Budget and Finance Committee heard from analysts and department heads who painted a dire picture of the city’s balance sheet, and what it may take to fix it.

Raise taxes and more leave.  Continue spending what you do not have and expect cuts in public safety.  Give more money to government schools and the failures will multiply.  Los Angeles, like San Fran is collapsing.  The State can not help—it has a minimum of $54 billion in deficits—and climbing.

‘This Is Going To Be Brutal’: City Of Los Angeles Faces $400-$600 Million Shortfall

LA1st,  10/26/20   

“Ugly.” “Horrendous.” “Brutal.”

Los Angeles City Council members on Monday searched for the appropriate words to describe the city’s fiscal crisis.

City budget analysts released a report on Friday detailing how COVID-19 has knocked revenues even lower than projected, at the same time that unexpected costs have driven spending up and the city has agreed to defer planned furloughs for civilian employees. The projected gap for the budget year that began July 1 has grown to $400-$600 million, according to City Administrative Officer (CAO) Rich Llewellyn.

The City Council’s Budget and Finance Committee heard from analysts and department heads who painted a dire picture of the city’s balance sheet, and what it may take to fix it.

“I cannot overstate the revenue challenge,” said Llewellyn, adding he predicts program cuts that will “certainly impact services on which our residents rely.”

In September, the council declared a “Fiscal Emergency” to allow the city to implement furloughs amounting to a 10% pay cut for 16,000 civilian employees.

The city also tried offering employee buyouts to reduce costs, but only a fraction of eligible employees actually volunteered for the “Separation Incentive Program.” It’s now expected to save just $2.6 million this year.

Meanwhile, labor unions successfully negotiated an alternative plan to defer the furloughs until at least 2021. Instead, many employees will take an unpaid day in November and April, but receive an unspecified floating holiday, according to SEIU Local 721, which represents many civilian city workers.

“We look forward to working with city leaders to continue aggressively identifying any and all cost-saving options that will above all guard the vital services LA City residents count on and protect the workers on the frontlines of those vital services,” SEIU 721 President Bob Schoonover said in a statement. He added “it is still too soon in this fiscal year to make any drastic decisions.”

Layoffs have already been floated: Last month, Mayor Eric Garcetti asked city managers to identify places to cut — including “non-critical” services and employee positions. That was based on a worst-case scenario of revenues falling $200-$400 million short.

Budget chair Paul Krekorian said city departments will have to walk away from programs that aren’t part of their “core services.”

“We need to be prepared to say the city cannot afford to do X, Y or Z anymore,” Krekorian said.

During the public comment period, activists who have been calling for the city to reimagine community safety called in with recommendations.

“There’s no way to make that math work when we ignore the elephant in the room,” said Ricci Sergienko with The People’s City Council. “You need to defund the police.”

Councilmember Mike Bonin made a public plea to the union representing sworn officers, the Los Angeles Police Protective League, to reopen contract negotiations.

“I’m urging them, please to come to the table,” Bonin said. “The best way you can protect and serve Los Angeles now is shared sacrifice. This city and this city government is bleeding.”

Police union President Craig Lally dismissed the idea in an emailed statement. “With murders up 26% and shootings up 23%, and no sign of slowing, more cuts to police resources make zero sense and put Angelinos at risk,” Lally said. “We’ve already made sacrifices to support City budget shortfalls, they need to look elsewhere.”

Krekorian said the city will continue to find savings, but ultimately, personnel costs such as public employee contracts and pensions will have to be addressed.

“Every general manager in the city is being asked to savagely cut their budgets right now.” he said.

READ THE CITY ADMINISTRATIVE OFFICER’S REPORT:

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. Otis Needleman says

    Too bad, so sad. What did the “genius” Garcetti think when he and his ilk put the city under house arrest? And now we are supposed to care? NFG. And there will be no bailout from Washington. LOL

  2. I belong to an organization that has an annual convention. It is large.

    It never has a convention in L.A. because the downtown area is not cohesive and has too many criminal and low income areas.

    This is nothing new. Garcetti is an idiot who supports the changes of the city into a poor bvarrio of Mexico.

    He has no credibility and has proven the Democrat Machine has massively failed the citizens and businesses of that city for 40 years.

  3. Do not cut police fire or schools. They can get rid of anything else

  4. Philip Gallanders says

    The approaching fiscal implosion of Los Angeles, merely mimics the larger similar fiscal implosion of California. According to New California State Conference call last night, California is down to somewhere between $100-$125 BILLION and March 29th 2021, will be the end of the lies from Sacramento.

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