Dealing with L.A. deficit

jan1.jpgWho knows where this will go, but the mayor and at least five L.A. city council members are sounding more serious about the need to cut costs in dealing with a budget shortfall that's over $200 million (and likely to grow). They're circulating a letter that says revenues are coming in significantly lower than original projections (no specifics so far). That means the prospect of layoffs, consolidating departments, selling off city assets, outsourcing services, ongoing furloughs, and a hard hiring freeze. At some departments, notably the LAPD, a hiring freeze may not go down so well. Same with the city unions. But it has to be done, and so the letter is at least a first step. Anyway, Councilwoman Jan Perry, who was among the five who signed the letter, provided a down-to-earth reality check of the budget dilemma this afternoon at Emma Schafer's Current Affairs Forum.

We are required by the city charter to balance the budget. That should make it easier for people who have issues with making decisions that have human impacts. That means layoffs and cuts in services that are not defined as being essential.

I asked her why all these ideas didn't get put on the table a year ago, when it was clear that the city would be running into some serious financial problems.

"For some people it's hard to face people who they've had relationships for years and say we'll have to terminate you or your department is gone. I think a year ago some people were in denial.... Some people were just not ready to hear it."

Then I asked where the mayor was a year ago.

"I can only guess as to where he was and I don't want to surmise because I could be wrong. I'm not in his head. But ... I don't know. People come in with different agendas, different imperatives, different goals and because the mayor is going to be here for 8 years and the council members are going to be here for 12 years it's like bus stations - some people are arriving and some people are departing and you have these competing interests."

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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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