L.A. running out of money

Without a $90 million transfer of reserve funds, the city will be in the red by May 5, according to Controller Wendy Greuel. In other words, payroll can't be met. But that only ensures solvency until June 30 - and leaves the city with essentially no reserves. Even with wholesale cutbacks there wouldn't be enough time or savings to make much difference. The fiscal crisis has been building for some time, but was precipitated by the DWP refusal to send a $73 million payment to the city's general fund. "The question I have been asked most often during the budget crisis is, 'When will the city run out of money?" Greuel said in the e-mailed release. "Unfortunately, we finally have the answer." (Bloomberg, LAT)