Posted on 02/15/2010 9:33:32 AM PST by TigerLikesRooster
L.A. budget crisis threatens jobs, credit rating
Steve Gorman
LOS ANGELES
Sun Feb 14, 2010 3:16pm EST
Downtown Los Angeles is seen from behind a row of trees in East Los Angeles January 18, 2008. REUTERS/Lucy Nicholson
Downtown Los Angeles is seen from behind a row of trees in East Los Angeles January 18, 2008.
Credit: Reuters/Lucy Nicholson
LOS ANGELES (Reuters) - Los Angeles, the second-largest city in the United States, is confronting a mounting budget deficit that threatens to force thousands of job cuts, deplete its fiscal reserve and further damage its credit rating.
/snip
LAYOFFS OR PAY CUTS?
The crisis has put Villaraigosa, a former labor activist, squarely at odds with unions that represent 98 percent of L.A.'s municipal work force, which in turn accounts for 80 percent of the city budget.
/snip
He also has suggested that large layoffs could be avoided if the unions were willing to accept pay cuts.
"If everybody took a 5 percent cut, it would add $150 million to the general fund," the mayor said on Thursday at an event sponsored by the local business leaders.
Union officials have bristled at those proposals.
(Excerpt) Read more at reuters.com ...
Unfortunately, not many do.
I’m always met with amazement when I say that, then I have to explain. Some appear to understand, others refuse. I think those who refuse to understand are afraid of the “embarrassment” as opposed to having gov’t running amok.
Yes,
“Bring it on”!!
You’re absolutely correct, that’s why I detest the LSM.
The Chinese government would love you among their ranks. You sound just like a good communist.
I understand you are joking but some people on here might actually take you seriously.
I didn't say it wasn't but CA is the poster child for this financial debacle we all face.
The Unions will destroy themselves over the next couple of years over salary and pensions in the public sector.
The taxpayer is FED UP with their sh!t.
I have lived in the Los Angeles area for the past 25 years and I also want to see the city and state go bankrupt so a bankruptcy judge or panel can throw out the ridiculous union contracts and start over; like what is done in the corporate world.
The small amount of discretionary funds (about 20% of every property tax dollar to a County) pays for police (sometimes fire) and administration (Treasurer, Auditor, Assessor, Recorder, Clerk/Elections.) Costs for individualized functions like planning and building costs are offset by permit fees.
The unions for the big state programs won't bargain for pay reductions because they are a state funded program. Likely, they aren't going to get laid off. The police, fire and other discretionary programs were where the local unions relinquished a COLA to keep more employees working. They knew we didn't have the money and it was fish or cut bait.
The real problem is that as staff is reduced, so must the functions be reduced. The state and federal government can't demand the same bureaucracy with fewer people to do the job. The functions have to be pared down to fit staffing. For instance, we no longer have a dedicated code enforcement officer. The job is covered by other positions. So the number of cases has to be pared down to the most egregious to fit available staff.
The state passes so many regulations, permitting processes, reporting requirements, (like the recent defensible space requirements for wildfire around houses,) that we no longer can afford the staff to implement them. However, since they are still on the books that leaves a gaping vulnerability for suit for non-enforcement or lengthy time waits for inspection and permitting which slows economic development. You can't just cut the budget, the state and feds have to back off requirements as well in order to have the smaller government we want.
I would agree that Government in chaos is better than us in chaos. But is not the motto of the New World Socialists “Out of Chaos comes Order”?
Why any government employee needs to be “unionized” is beyond me.
Government unions are by far the most corrupt, and harm the tax payers far more than any other private sector labor unions.
Union accounting practices:
Budgeting = screaming, marching, wishful thinking
We can’t go into BK fast enough, out here.
Slap some sense into these greedy, protectionist bass-turds.
We all can thank JFK for signing Executive Order 10,988 for
allowing civil service employees the right to join a union.
If he hadn’t done that, we wouldn’t have this problem.
We’re right now listening to the state Office of Job Killers, executive director, explaining how simple cubical’s for fat bloated government employees, cost the California tax payers $7,000 dollars each...
No joke.
I survived the cuts, but was "bumped down" a classification, and lost income of at least 10%.
This is what is necessary.
Agree, when the private sector union hits recession, they lose 50% or more of there membership to layoffs. They suspend apprenticeship enrollment, help members try to find work and contract as an organization.
Government unions make closed door extortion deals with congress, sneak in tax increases, and cry to the media that the children are all going to perish in flames if they lay anyone off.
I hear ya, I live in Tustin. If this AB-32 nonsense is approved this state is done for good.
Agree
You bet.
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