Report warns of L.A. budget disaster

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Report warns of L.A. budget disaster

LOS ANGELES — A report released Friday outlined steps the City of Los Angeles must take in order to avoid a major financial disaster.

Chief Administrative Officer Miguel Santana’s report blamed much of the current $222-million budget shortfall on rising costs of employee payroll and pensions.

Santana says that number is expected to rise to $427 million by 2014-15.

“We’re always in crisis mode,” Santana told the L.A. Times. “We’re facing the complete devastation of city services, including public safety.”

The report proposed raising taxes on parking and property sales, as well as farming out services, such as managing the Convention Center and the L.A. Zoo to non-profits to help shore up as much as $150 million in new income needed to avoid bankruptcy.

Mayor Antonio Villaraigosa is set to release his new budget for 2012-13 by the end of the month.

 

Source: KTLA
Image: East Chapel Hill Observer
8 April 2012
2:05 p.m. P.D.T

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