Bernard Parks - CD8

Mayor Releases Proposed Budget; Parks Thinks Revenue Projections Too Optimistic

LOS ANGELES (KABC) -- Mayor Antonio Villaraigosa proposed a $6.9-billion budget Wednesday. He calls it a path to financial stability. But some say the spending plan is more than Los Angeles can afford.

John North, ABC 7 Eyewitness News

Mayor Antonio Villaraigosa's budget would expand library hours and increase street repairs. But he warns the city's 33,000 employees they could lose up to 36 days of pay if they don't make concessions on pensions and healthcare.

The budget includes the possibility of 26- and 36-day furloughs. There is a $457-million deficit. But the budget keeps the police department at its current level and maintains fire department staffing, while eliminating $54 million.

A coalition representing 19,000 city employees is voting on a new contract already approved by their leadership.

"If the others approve the template that the coalition has tentatively agreed to there won't be furloughs for anybody," said Villaraigosa.

Los Angeles City Council President Eric Garcetti joins the mayor in turning up the pressure on the unions. "We hope that they will protect their future healthcare by paying in right now. That will not only help balance the budget, but end the furloughs," said Garcetti.

The LAPD is taking the biggest hit, $100 million, which includes cuts in overtime, 8 percent of its budget. LAPD Chief Charlie Beck worked with the mayor on the budget.

"The continued hiring of police officers makes us strong enough that we can not only respond in an emergency, but that I can flex officers to accommodate crime trends," said Beck.

The mayor proposes borrowing money to pay for debt service. He's optimistic about the economic recovery.

City Council Budget and Finance Committee Chairman Bernard Parks thinks Villaraigosa may be too optimistic.

"It appears that the revenue projections are over-optimistic, particularly in light that as of December of last year they showed a significant drop in all of our revenues," said Parks.

If the mayor cannot get the union concessions, it's going to be a far different budget that comes to the city council. There are a lot of "ifs" in this, including his financial projection. There's a long road to go. (Copyright ©2011 KABC-TV/DT. All Rights Reserved.)

Mayor Villaraigosa's budget could furlough Los Angeles workers, reduce some fire services

Frank Stoltz, 89.3 KPCC

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Los Angeles Mayor Antonio Villaraigosa has released his proposed budget for the fiscal year that starts July 1.It calls for furloughing city workers if they don't agree to contribute more to their pension and health care plans. The city faces a projected $460 million deficit for the fiscal year that starts July 1.

The mayor's already struck a deal with the leaders of most city labor unions, but their members have yet to vote on it.

“I’m assuming that our employees will approve the tentative agreement with the coalition of unions," said Villaraigosa. "Part of how we’ll move ahead is by shouldering the burden together.”

Villaraigosa proposes up to 36 unpaid furlough days for many civilian city workers if they don't agree to contribute more of their paychecks to pension and health care plans. He seeks similar agreements with the police and firefighters’ unions.

The mayor's nearly $7 billion spending plan maintains the size of the LAPD, but cuts overtime; reduces fire department services in some areas; and eliminates 640 mostly vacant city jobs. It increases library hours, thanks to money from a voter-approved measure, and repairs more potholes.

“We’re beginning to see the light at the end of the tunnel," said Villaraigosa.

L.A.'s Chief Administrative Officer Miguel Santana says the mayor's proposed cuts are not nearly as bad as in the last couple of years when the city eliminated 4,000 jobs through early retirements and layoffs.

“Last year, there’s no doubt, it’s probably the most dramatic cuts the city has faced in its entire history," said Villaraigosa.

City Councilman Bernard Parks, who heads the budget committee, says the mayor’s budget needs closer scrutiny.

“The number one issue is how solid are the revenue numbers," said Parks. Parks wonders if Villaraigosa wasn’t too optimistic, given a financial report in January that showed tax revenues down.

“Every one of our revenue sources was down, with the exception of the bed tax and the tourism," said Parks. "Now, within a month or two, this report is reflecting an uptick on everything with the exception of one or two so there’s a complete reversal.”

Parks also questions the mayor’s plan to borrow $43 million to close the budget gap. He says he wants to make sure the LAPD, which consumes half of the city budget, is shouldering its fair share of cuts. The mayor’s budget is subject to City Council approval.