Non-answers on L.A. budget

"We're in a crisis mode, there's no question about that," L.A. City Councilman Ed Reyes said at Emma Schafer's Current Affairs Forum this afternoon. He was referring, of course, to L.A.'s budget crisis, and the prospect of additional layoffs. What Reyes did not do was specify ways in which the crisis could be contained. He didn't say whether he would be willing to go against the politically powerful city unions when it came to making cuts. He didn't explain how the city would deal with its massive pension obligation. He appeared to oppose bankruptcy as an option, but didn't explain why (other than to point out that Orange County and San Diego didn't have an easy time when they filed). He was asked what cuts he would be prepared to make, and he answered by noting the one area that he didn't want to cut: public safety.

I don't mean to pick on Reyes - most members of the council would probably have said the same things. But that's the point. Both the council and the mayor are clearly ill-equipped to deal with a deficit of this magnitude - it was never part of the job description. They can't even agree on the number of layoffs that will be required next fiscal year. "I think people are putting out numbers based on a lot of assumptions, and people can't agree on those assumptions," Reyes said. I'm guessing that folks at all levels of city government are scared out of their wits. They're afraid that doing nothing will lead to an Orange County-like disaster, but that doing something - as in cutting city department and services - will lead to them losing their jobs.

Bankruptcy isn't being considered, not because it's necessarily a bad idea (no one really knows), but because it would be political suicide. What they're no doubt hoping for is a miracle - an economic upturn that would quickly boost tax revenues and eliminate the need to downsize city government. Reyes made sure to mention that more property and utility taxes were starting to come in, as if those incremental improvements would even begin to address a $500 million deficit next year. But what else is the guy going to say? Hope and prayer aren't what you'd call effective policy platforms.


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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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