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Cutbacks, Layoffs And LA's Uncertain Future

La On The Brink

MICHAEL R. BLOOD   02/28/10 04:57 PM ET   AP

LOS ANGELES — For two decades, Los Angeles built libraries with a vigor rarely seen in the nation, spending $335 million to get books and computers within the reach of those who might not otherwise have them.

Now, it's getter harder to get inside the buildings.

A hobbled economy has left the nation's second-largest city starved for cash, and 72 library branches now are closed Friday mornings to save money. More than 1,000 people work at the libraries, but layoffs and retirements could slash the staff by 20 percent or more by June. Hours will be cut again.

A new era of austerity has arrived grimly in Los Angeles, where Mayor Antonio Villaraigosa is warning the city must do more with less. The library hours only begin to tell the story. As many as 4,000 layoffs are planned, which would translate into more gaping potholes, neglected parks and streets lined with overgrown trees.

Its zoo and convention center could end up being run by private operators. The mayor is determined to protect his biggest success, a bulked-up police force, but even officers are being asked along with other city workers to consider pay cuts as deep as 15 percent.

At the city's newest library in the trendy Silver Lake neighborhood, where the stacks are illuminated by skylights, Leon Moore grimaced at the thought of locked doors.

"You go where the books are, the books don't come to you," lamented Moore, 65, a history buff who borrows regularly from the library's DVD collection. When it comes to budget cuts, libraries should "be the last resort."

Governments across the nation are strapped for cash after a national recession and its wake. But City Hall in Los Angeles is also paying for its decision to hire workers during economic good times while failing to recognize those days could end.

"Now we have a work force we can't maintain," City Administrative Officer Miguel Santana said.

The city is facing budget gaps of $700 million over 16 months, but the problems will linger for at least several years. By 2013, a $1 billion gap is projected as expenses outpace the money coming into the city treasury.

Los Angeles' credit rating has taken a hit, meaning it will cost more to borrow money. Collections of sales taxes are expected to dip more than 10 percent this year as consumers cut back on spending.

"Unlike the federal government, the city can't print money to prime the pump," said Tracy Westen of the Center for Governmental Studies, a Los Angeles-based research group, referring to Washington's vast stimulus spending.

For the mayor, "a lot of this is simply beyond his control," Westen said.

Santana said 4,000 layoffs endorsed by the City Council and backed by the mayor would save $300 million in the fiscal year that starts July 1, not enough to close the gap.

If completed, the layoffs would cut the work force paid from the city's general fund by 16 percent. Overall, Los Angeles has 46,000 workers, but 21,000 are paid from separate sources, such as at the Department of Water and Power, which collects utility rates.

One of the key issues: the city's pension contributions are expected to soar to make up for huge stock market losses during the recession.

The nation and city have weathered recessions before, and the hopeful imagine Los Angeles will emerge with a leaner, more efficient government. Villaraigosa wrote recently that he wants to reinvent government "with a smaller footprint focused on the most important needs," and he has moved to shut down some small agencies.

But the fear is layoffs and cutbacks will lead to a city something less than it is today.

With unemployment in double digits, "to talk about layoffs ... completely misses not only the impact on the quality of life, but the impact on the economy," union leader Cheryl Parisi said.

"Libraries are going to be closed," predicts Parisi, chair of the Coalition of Los Angeles City Unions, an umbrella group for 22,000 workers from librarians to street maintenance workers. "They are going to cut maintenance for parks. You are not going to have crews out filing potholes."

Now in his second, four-year term, Villaraigosa came into office in 2005 promising to reshape Los Angeles for the 21st century.

Crime is down, but the shortage of cash will limit what he can do. Old programs might be shut down to make room for the new. Long-standing problems like clotted traffic and troubled public schools remain.

While economists believe the national recession is over, no one is predicting a quick recovery in Los Angeles. In the recession of the early 1990s, it took nearly a decade for sales tax collections to bounce back.

Villaraigosa attended the opening of the new, $12 million library in November, where he said it would be "a place where children and adults alike can broaden their horizons."

Less than a month later, the hours were cut.

At the Silver Lake library, Nicole Fazio, 37, said she was reluctant to be critical about reduced hours because she grew up in rural Washington without one in town.

"The next generation is in here," she said. "It's a hot spot."

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LOS ANGELES — For two decades, Los Angeles built libraries with a vigor rarely seen in the nation, spending $335 million to get books and computers within the reach of those who might not otherw...
LOS ANGELES — For two decades, Los Angeles built libraries with a vigor rarely seen in the nation, spending $335 million to get books and computers within the reach of those who might not otherw...
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HUFFPOST SUPER USER
RichDavid
Humanist
02:23 AM on 03/02/2010
Mr Blood....the reason we have a work force we can't maintain is because Tony V over-hired 6,000 to 8,000 city employees on his watch. These are not just Police but every city department filled positions while he was running around the world trying to get Hillary elected and not watching the store.
The last 3 mayors put hard hiring freezes on and kept them on so the city would stay around 42,000 which could be maintained in up and down times....Tony V didn't know this, among other things, and now you have the hatch-boogie man Santana trying to clean up the mess.....
06:02 PM on 03/01/2010
Please read this article, which was just posted this afternoon, 3/1/10:

http://blogs.laweekly.com/ladaily/city-news/villaraigosa-spends-millions/
06:37 PM on 03/01/2010
well, according to that article, LA's budget deficit is only $212

that doesn't sound too bad
01:14 PM on 03/01/2010
One of the key issues: the city's pension contributions are expected to soar to make up for huge stock market losses during the recession.

Most of us in the private sector have taken a hit in our retirement accounts and have had to "eat" our losses. Those in the public sector have been promised the "moon and the stars" regarding their pension and retirement accounts and this is no longer feasible in today's economy. If you want to point fingers, blame congress and wall street for their greed and collusion. They made (or disbanded) the rules and all of the our lost wealth has been transferred to Wall Street, including the public sector's pension funds. If that lost wealth (pension funds) is an obligation that needs to be honored, then governments at all levels have some real hard descisions to make. I wouldn't think folks in the private sector would be happy contributing to "fund raisers" to help keep the pensions of those in the public sector whole. So to balance the accounts, the only thing left to do is cut the number of government sector employees or cut their pay and their retirement expectations or a combination thereof. It the money is not there, there's no way to create it. Bankruptcy is the only other option.
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12:37 PM on 03/01/2010
California has been the testing ground for GOP inspired policy for decades. The push for smaller government and less taxes, has put us in the perilous position we're in now.

Prior to Prop 13, CA. enjoyed top status, being 5th among all nations (even though it's a state) on the globe in GDP. Since the enactment of Prop 13 (the beginnings of the Reagan Revolution), we've seen a steady, now rapid decline.
http://www.time.com/time/nation/article/0,8599,1904938,00.html

Many other bad GOP ideas have been enacted, such as the state's deregulation of our power plants, that caused massive price gouging from out of state power companies, where once CA. had independence and control over its power needs.

Now look at unfunded propositions, like more cops. Sure we all want more cops but where's the money? Well, less government means you have to lose something else, libraries, parks, road repair, you pick, the money has to come from somewhere.

Add these horrifically stu. pid ideas, to unfunded state propositions and a worldwide financial meltdown, you get CA. today.

The GOP would have us believe we can have our cake and eat it too, well, the cake's gone and now we're left with crumbs.
Thanks for everything.
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philhellene
Far Left and Proud of It!
02:22 PM on 03/01/2010
Well, now we all get to see in L.A. what will occur if the Republican dream of bare-bones government ever goes national.

One city in the area is now going to charge for the Fire Department to respond to a 911 call.
06:26 PM on 03/01/2010
you start with the premise that CA is a "small government" state

lol

after that bit of nonsense, couldnt take anything you said seriously
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12:19 PM on 03/02/2010
Not surprised you don't understand, you've made up your own sentence that has no basis.
What I said was CA. once had a GDP that was rated 5th among all nations, even though it's a state. We're talking about GDP, you're talking nonsense. What you've come up with is a complete distortion of what I said.

It's CA. history, do your homework and you will see these are facts I'm stating or continue to be ignorant and rant at those that point up the truth.
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11:49 AM on 03/01/2010
I understand that the California real estate tax changes only with each new owner. In Chicago, if a little old lady purchased property for $10,000 in 1968 she WOULD NOT still be paying 1968 property taxes. It doesn't matter how long she would have owned the property her tax bill would increase yearly.
Californians have had it easy regarding real estate taxes. I just cannot comprehend how one of the wealthiest states in the nation cannot afford to goven themselves. Illinois has done pretty poorly also. State governments have to be made more accountable and transparent (I'm getting tired of that word...). Way too much money is just wasted either on ridiculous and non-productive projects or on the politicians themselves.
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QueenOfViolets
11:29 AM on 03/01/2010
Let me tell how the District Attorney in Los Angeles is planning to help this dire situation:

He's throwing every bit of muscle and money that his department has into shutting down the medical marijuana dispensaries in LA.

Even the ones approved by the City Council.

Yup, get rid of all the medical marijuana, and things will magically improve.

His name is Carmen Trutanich.

Remember that name, in case he ever runs for Congress.
06:29 PM on 03/01/2010
yup,

i agree

we waste resources shutting down these legal businesses

we talk of cutting money to schools and parks

yet we dont talk of cutting the hundreds of millions we spend on illegal aliens
11:18 AM on 03/01/2010
Its just..STUPIFYING..that so few..know about the "Solar Grid" idea..

The "Plan" is DONE! All worked out..tyhe "Math" is real easy...Kilowatts..Amps..Loads..etc..

The Sad Fact is...there is a PLAN right now..for a "100 x 100 mile square" Solar Collection Grid in the Mojave..that...get this...gotta shout it out..sorry font sensitives...

COULD PRODUCE ALL THE ELECTRICITY REQUIRED TO RUN THE ENTIRE UNITED STATES! PERIOD!

Yup! LOOK IT UP!

This has been featured in a recent Documentary..and there is TONS of info on the web..the bottom line?

California..could...not ONLY..change Americas Future....but change the WORLD!

And they COULD do this..TOMARROW...start a MASSIVE Jobs program..rail systems for workers...that ALONE could save L.A. then the "Grid" itself..the NATION-WIDE restructuring of Transformers and Power centers..Jobs..Jobs..Jobs!

Frankly..the EXTENT..to which this is being IGNORED....is PROOF of the MAGNITUDE of Corporate Corruption in "Government"....they would RATHER the state go DOWN..than provide ELECTRICITY to the ENTIRE NATION!

Think about it...We could Provide this enrgy for at MOST 2/3rds of the current(ahem) Rate..it would be CLEAN...much more so than COAL..or Nuclear(!?!) And then what of psossible "Dividends" etc..?

Nope! The absolute..undeniable..FACT: California is SUFFERING..BECAUSE...the "Leadership" is savagely corrupt..and is IGNORING..literally..just plugging their ears to..Amazing Solutions..ready to go...if we only had..real.."Representation"!
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11:34 AM on 03/01/2010
LA Times..October 19, 2009|Louis Sahagun

EL CENTRO, CALIF. — Across the desert flatlands of southeastern California, dozens of companies have flooded federal offices with applications to place solar mirrors on more than a million acres of public land.

But just as some of those projects appear headed toward fruition, environmental hurdles threaten to jeopardize efforts to further tap the region's renewable energy potential.
01:51 PM on 03/02/2010
you should talk to "minister" farrakhan

perhaps his giant spaceship in the sky could help you build it
11:15 AM on 03/01/2010
Mayor Villaraigosa, aka His Honorable 10%--so named after an LA Weekly story revealed the Mayor only spends 10% of his schedule in actual city governance--is considering reducing his time commitment to city government to 5% or less. Said the Mayor, "In good times I spend most of my time fundraising and tending to the Villaraigosa â„¢ brand; with the recession, I'm going to have to spend even more time scraping together campaign funds from a denuded fundraising environment. Woe, to be me."
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philhellene
Far Left and Proud of It!
02:27 PM on 03/01/2010
God forbid he should actually do the job he was elected to - I mean, everything else besides self-promotion and planning future political aggrandizement.

As I have said before - Tom Bradley - the last great mayor of L.A.
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HUFFPOST SUPER USER
solea
11:01 AM on 03/01/2010
What caused this cities decline was a broken infrastructure that was not meant for so many people when it was first build. The homeless crisis that was brought on by the closing of mental hospitals back in the early 70's give or take along with the crack cocaine epidemic in the early 70's with Regan's failed drug policy. The Contras was founded by drug money because the congress then wouldn't found that war and Oliver North ended up being the fall guy. Plus, new minimum sentencing guide lines for drug offenders which were eventually released from prison or jail to nothing because a lot of the manufacturing jobs like Goodyear etc left the city. Prob 13 had a lot to do with it also with absentee landlords. The biggest factor for the decline was incompetent politicians and voters that didn't know what they were doing when casting their ballots.
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HUFFPOST SUPER USER
solea
11:05 AM on 03/01/2010
I forgot to add this. We are seeing a lot of homeless families this city due to the economic crisis. When I first moved here to LA in 1966 I didn't see any homeless people at all.
11:19 AM on 03/01/2010
Meanwhile, the City continues its over-spending on police in its whack-a-mole approach to fighting gangs while compassionate city services for the mentally ill and homeless as if they were the "fat" in the budget.
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09:52 AM on 03/01/2010
No surprise here, the stimulus money spent here in CA just postponed the inevitable. Every city in this state has the same problem. The rest of the nation might see the first bankruptcy of a state. Not good for us.
09:35 AM on 03/01/2010
This is what happens when progressives call the shots for decades. The greater LA area should impose an additional 20% tax on people making over $500k in the "arts" field. This will make all the actors and musicians feel real good about themselves, where they can put up their own money, instead of trying to spend others for a good cause.
09:34 AM on 03/01/2010
I certainly don't want to, in this economy, suggest adding any more expenses to a person financial burden, however, it's my understanding that California real estate tax laws dictate that your real estate tax bill is frozen forever at the time you purchase your home.
Everywhere else in the country a persons real estate taxes increase over time.
Considering that California has some of the most expensive homes and wealthy people in the nation it seems unfair that a person spending multi-millions on a home would have their real estate tax bill freeze.
I would think that the state could seriously profit by changing this law.
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
10:43 AM on 03/01/2010
Yup prop 13 froze it however the real estate values have fallen, and prop 13 never dealt with that,
some property tax bills are reduced and taxing authorities are collecting less.
11:40 AM on 03/01/2010
HOW can people continue to just.."Forget" about the "Housing Bubble"?..Remember that?

"Property Taxes" don't "Freeze"...the 1% of PURCHASE PRICE.or "Prop 13"...changes with each new owner!

I am also amazed by the..inherant "Classicism" that these.."Arguments" lend themselves to.

For example..you say..without hesitation.."Expensive homes"..well..let me ask you THIS:

WHAT IF..just supposing...some folks bought some land in say.."Mendocino County"..in say..1968? Hello "Gentrification"..AKA "The SUNDANCE EFFECT"..and with YOUR suggestion in place..well..Folks get PRICED RIGHT OFF THEIR LAND!

I mean this math..this concept..is..so...incredibly simple..and yet..is just..IGNORED!

If a person bought their land in 1968.....for 17K...and now had to pay "Current Value" based taxes? Are you KIDDING? So..a 65 year old Woman would be expected to pay TAXES..based...on the now..MILLION DOLLAR "Values"?

So...you'd basically "PUNISH" the folks that didn't need an Article in "FORBES" to know beautiful land when they saw it? AND..your also suggesting that the F 00Ls that paid WAAY too much..become the TAX BASE? Aka "Peak Bubble"?

Bottom line? You said it all.."MOST EXPENSIVE REAL ESTATE"...so...HOW...could "We"..the..uhh.."Non-Millionair" afford to KEEP mour homes under a system that was "market based"? How? AND..with it being in the Staes BEST interest TO increase values..how long would it take to make California into an Enclave of ONLY the Super Rich?
06:45 AM on 03/01/2010
as the city talks about cutting services that people actually like (parks, libraries, police, road-care, teachers)

i never hear them talk of cutting (or eliminating) the hundreds of millions spent on programs whose beneficiaries are illegal aliens
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graffitijoe
snowballs chance n SoCal
07:38 AM on 03/01/2010
Because that would be unthinkable. Caring for our erstwhile neighbors from the south is like breathing, or swimming if we fall into the water - it's just instictivly done as a matter of course. In fact, you don't even mention the matter in polite company.
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
10:44 AM on 03/01/2010
The city has no authority over teachers that's LAUSD alltho it's got its own issues.
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HUFFPOST SUPER USER
VictoriaP
Do Your EFFING Jobs, DC Politicos!!
04:56 AM on 03/01/2010
tony v. has proven himself to be a great actor. his best role, to date, has been pretending to be mayor of LA!