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26
May 2010
Revision to budget includes more layoffs

A divided Los Angeles City Council sent Mayor Antonio Villaraigosa a revised version of his $6.7 billion budget, calling for the layoffs of up to 1,761 workers, furloughs for municipal employees and reductions in popular programs.

The 10-3 vote calls for 1,000 more layoffs than the mayor had proposed, but only if the city fails to get a projected $53 million from the lease of its parking garages. The budget now goes to Villaraigosa, who has five days to approve it in whole or veto individual line items.

"We will be looking at all the actions of the council," Deputy Mayor Matt Szabo said. "The mayor's major concern was seeing the council restore funding for the anti-gang programs."

Council members Janice Hahn, Richard Alarcon and Jose Huizar voted against the budget.

Huizar said he opposes cuts in after-school programs at parks and reductions in library services.

Under the plan, there will no longer be licensed child care workers at parks, and library hours are being cut by one additional day a week.

"I think this is short-sighted," Huizar said. "For $5 million, a small investment, we will make sure working parents have a safe place for their kids. Many of these parents don't have any other options.

"What we are doing here is a mistake. I believe the departments could find the money they need to keep these programs open."

But Councilman Bernard Parks, chair of the Budget and Finance Committee, said the city has few options as it had to cover a $485 million shortfall.

"This budget is balanced and the issue of its revenues are real," Parks said. "We have some safeguards built in if the revenues do not come in as expected."

That plan is to require furlough days by city workers - 16 by those who did not receive cost-of-living raises and 26 days for other city employees - as well as the layoff of 761 workers immediately and 1,000 more if the parking revenue fails to materialize.

Negotiations are continuing with the unions to find $110 million in concessions to avoid any layoffs.

City union leaders have said they believe the layoffs can be averted if the city would consider proposals in their alternative budget to bring in extra revenue though increased collections of outstanding debts.

Alarcon said the layoff issue was his major concern.

"I believe we have not looked at all the revenue options out there," Alarcon said. "I don't believe we need to lay off any workers."

Along with the spending plan, the City Council's leadership of Eric Garcetti, Jan Perry and Dennis Zine sent a letter to the mayor requesting that he ask city department heads to take salary cuts.

"While the budget adopted by the council also includes 26 furlough days for assistant general managers and 16 furlough days for department general managers, it would be important for the highest levels of the city work force to also make salary reductions," the three said in a letter.

The mayor has taken a 16 percent cut and several council members - but not all - have taken pay cuts. This year's budget reduces the overall budgets of elected officials by 8 percent.

"We believe this action will demonstrate to the civilian work force that we will continue to work in concert with them as we undertake the difficult task of adopting a sound framework for fiscal stability.

The Mayor's Office had no comment on the proposal.

Los Angeles is not alone in its financial problems.

A study released Wednesday by the Pew Institute of 12 major cities around the nation found that all were dealing with major budget issues that have required layoffs, furloughs, reduced city services and tax or rate increases.

"City services remain stressed," the report said. "Many cities plan to keep doors closed on some library branches, recreation centers or firehouses. New York and Boston were proposing further closures of pools and reductions in library subsidies."

Among the cities studied, Los Angeles faces the fourth largest budget deficit, with a $485 million gap that represents 11.2 percent of its total budget. Chicago ranked first at 16.3 percent.

Several of the cities, like Los Angeles, have asked employees for concessions and are looking at pension reform to reduce future costs.

The report concluded there is no immediate relief in sight.

"The cities can expect the fiscal pain to continue," the report said. "The National League of Cities has noted that city fiscal conditions typically lag the national recovery by two years and there is no reason to think that this time is an exception."

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