In mid-January 2010, the National League of Cities released a report warning of severe budget shortfalls for city governments nationwide, ranging from $56 billion to $83 billion from 2010 to 2012. Antonio Vallaraigosa, Los Angeles mayor is ultimately avoiding the long-term consequences by attempting to solve this budget deficit with panic responses. The LA mayor proposed cutting 2,000 jobs from the city’s payroll to close the $212 million budget gap and put everything on the table; privatizing parking garages, selling the zoo and convention center.
On the one hand the mayor seems to be trying to pressure the public employee unions to take a five to 10 percent wage cuts, but the door for negotiations with public employee unions seems closed.
The Los Angeles’ budget deficit is a result of the 2008 mortgage meltdown and that Los Angeles. Vallaraigosa is responding by cutting thousands of employment positions.
The city has also attempted to raise public fees such as for water, power and even the parking meters. Los Angeles can only borrow so much money from different credit agencies especially after Moody and Fitch credit agency gave LA low credit rates.
So far, there has been no national political response to the crisis in Los Angeles.
Title: Slash and Burn Economics May Close LA’s Multi-Year, $1 Billion
Deficit – But at What Cost?
Source: Rondom Length Harbor Independent News, Feb 19-March 4, 2010
URL: www.randomlengthsnews.com/images/IssuePDFs/2010…/rl_02-18-10.pdf
Author: Terrelle Jerricks,
Student Researcher: Dana Johnson
Faculty Evaluator: Steven Cuellar
Sonoma State University
Similar Posts:
- Effects of Budget Cuts in America
- Budget Problem Solved: Tax Stocks and Bonds Transaction
- California is the Only Major Oil Producing State without an Extraction Tax
- $25 Billion in AIG Bailout Money Went to Wallstreet Banks
