Los Angeles Mayor Antonio Villaraigosa on Thursday signed off on a $6.7 billion city budget that slashes city services, raises fees and could lead to up to 1,700 layoffs.

Villaraigosa made only one minor line-item veto to the spending plan, rejecting the City Council's effort to assert partial control over anti-gang programs that now operate out of the mayor's office.

Villaraigosa told the council he appreciated the work it had done to balance the budget in difficult economic times, and he agrees with most of the changes it had made to his original proposal. He noted that the plan maintains officer staffing levels at the Los Angeles Police Department.

"This budget stays true to the commitment to keep the people of Los Angeles safe," Villaraigosa said.

City officials said the signing of the budget, which at one point was facing a shortfall of about $485 million, allows them to now turn their attention to the city's long-term fiscal problems like pension and health care reform.

"Only long-term fiscal stability can ensure consistent delivery of police, fire and other critical services in both good times and bad," said City Council President Eric Garcetti.

While Villaraigosa vetoed the council's effort to assert jurisdiction over anti-gang programs, he agreed to give the council more oversight and information on those programs and their funding.

The mayor said this would include financial transparency with periodic updates to the City Council and to have the gang program report on use of rollover funds.

"Three years ago, we made a decision, together, to turn around a program that had languished in bureaucratic red tape, was not responsible to the community and had forgotten its mission," Villaraigosa said. "Our efforts are making a real difference today."

Aides said he talked with City Council leaders over the veto and did not believe there would be a problem when it is considered for final action today.

Councilman Bernard Parks, who chairs the Budget and Finance Committee, said he had told the mayor he had concerns with the gang programs, but was satisfied with his actions and statements.

"With these assurances of greater financial transparency and council collaboration and oversight, I feel comfortable my concerns have been addressed and recommend Council concurrence with the mayor's action today," Parks said.

A group of city workers, joined by religious leaders, protested the spending plan's layoffs and service cuts.

Bob Schoonover, president of SEIU Local 721, said the workers have already shared in the city's pain.

"During the last three years with our elected city leadership, we've accomplished things in good times and bad," Schoonover said. "As we go forward, we pray for wisdom and the guidance so we can continue to work together."

Representatives of city librarians and other city workers protested the impacts the cuts will have on services to young people and children, in particular.

The budget calls for a one-day-per-week reduction in service at city libraries and elimination of many child care programs at city parks and recreation centers.

The budget also calls for furloughs of 16 to 26 days for city workers and laying off 761 employees initially and possibly another 1,000 if revenue from the lease of city-owned garages falls short of the $53 million goal.

City unions have argued this will impact police services, since it will directly affect civilian jobs in the Los Angeles Police Department that will require uniformed officers to fill.

This is the second year in a row the city is looking at reducing its work force. Last year, 2,400 workers took early retirement and 100 were laid off.

Most city workers agreed to forego scheduled pay increases for two years, but Villaraigosa and other officials said they still need $110 million in savings to avoid the layoffs and furloughs for this coming year.

The budget continues LAPD at a sworn force of 9,963 officers, but there will be reductions on the civilian side that provides many of the department's support services.

It also continues the modified brownout of the Los Angeles Fire Department, with services reduced at selected stations throughout the city.

While the budget imposes no new taxes, it does offer new fees and permits. Among them are the cost to transport people in ambulances along with a study that looks at charging people when paramedics are called but no transportation is required.

Other fees scheduled to increase include golf green rates and various permits issued by the city.

City officials have said they believe this year's budget is more solid than those of the past two years, since it recognizes actual revenue and does not allow for any additional spending if the revenue does not come in.