Like it or not, time for City Hall to start chopping

cityhall3.jpgTry as they might to make the budget deficit go away, members of the L.A. City Council must start to face reality (or at least City Hall's version of reality.) It's asking budget chief Miguel Santana to come up with ways in which the roughly $150 million shortfall can be made up. I say roughly because no one really knows what the deficit total is or might be by the time a final budget is considered (just a few months ago it was estimated at over $200 million). That makes the process especially difficult because the mayor and other city officials seem to have a rosier view of the deficit than is warranted - and they could balk at making the needed cuts. Already, Richard Alarcon is pushing back. Among the ideas being considered: Eliminating the LAPD's three- and four-day work week shifts, deferring employee raises, and dropping plans to eliminate the business tax. From the LAT:

Although the city's revenues are slowly increasing, expenditures continue to outpace them, creating continuing deficits, Santana told the council in a budget update. Rising pension costs, promised employee raises and healthcare cost increases are driving much of the structural deficit, he said. Councilman Richard Alarcon characterized Parks' proposal as an ambush made when union representatives and business leaders were not in chambers to debate them. "This is essentially a declaration of war on so many entities we have worked with to achieve unity," he said. He asked the council to delay a vote for at least a week. But that request failed and the 10 council members present voted 9 to 1 in favor of examining the proposals in more detail, with Alarcon casting the only "no" vote.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent City Hall stories:
Garcettis are moving to Getty House in January
Council members at large (photo)
Greuel and others pitch Clinton for president (video)
Exit interview with Port of L.A.'s executive director
Garcetti on changing city hall culture

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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