Thread: Update: LA City BK Filing?

[Editor: LA City Budget deficit increases to $500 million per "official estimate". Expect
$1 billion deficit in 2011.]

L.A. Council to consider 1,500 layoffs today
Daily News Wire Services
Updated: 02/03/2010 08:52:48 AM PST

The Los Angeles City Council will consider today laying off 1,500 employees -- possibly
including police officers and firefighters -- and virtually depleting the reserve fund in an
attempt to close a $208.5 million budget deficit this year and $500 million next year.

City Administrative Officer Miguel Santana is scheduled to testify about his mid-year
Financial Status, Report which shows revenues plunged by double- digits during each
of the last four quarters -- a phenomenon not seen since the Great Depression.

The report contained a recommendation to lay off at least 1,000 and possibly up to
1,500 city employees as a way to cut costs. That includes 100 employees each from
the City Attorney's Office, Personnel Department and Bureau of Street Services; and
50 employees each from the General Services Department, Information Technology
Agency, and the Police Department's civilian staff.

To meet a Charter requirement to balance the books, Santana proposed borrowing about
$200 million from the city's $230 million reserve fund, but he admitted it could further
weaken the city's credit rating and limit the city's ability to cope with a major disaster,
such as an earthquake.

"That's one of the things that keeps me up at night, but we're at a point where we're
basically going to have to deplete our savings account," Santana said Monday.


http://www.dailynews.com/search/ci_14324306