L.A. revenues to tumble

City Controller Wendy Greuel expects L.A. will generate a lot less money next fiscal year, to the tune of $141.3 million. "While we believe that the City will see a modest economic recovery in the coming year, it would best be described as slow and gradual," Greuel said in her economic forecast (made in consultation with local economists). Much of that drop will be the result of less property tax revenue. She expects city government will look dramatically different in five years, "both in its size and scope of the services provided." But Greuel added that budget-cutting must be done carefully. "The City needs to first identify which specific core functions it plans on providing to Angelenos and then shift our resources to meet those needs, not the other way around," she said. There's nothing all that new in Greuel's report, but it presents yet another sobering picture of just how broke the city is and will continue to be. She sounds especially concerned about the city relying on so much borrowed money. Here's what she said about the Reserve Fund:

Despite actions taken to date, it is increasingly likely that the majority or all of the Reserve Fund may be used to balance the current year's budget. This will put us in a very difficult position for cash flow purposes. It would also leave us with very few options if the city were to experience a situation requiring the use of a Reserve Fund, such as a major earthquake or natural disaster.

Here's the report.