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L.A. budget crisis threatens jobs, credit rating(union refuses 5% pay cut)
Reuters ^ | 02/14/10 | Steve Gorman

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 ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: budget; la; layoff; paycut
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To: dragnet2

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”!!


21 posted on 02/15/2010 10:28:43 AM PST by SZonian (I see people who claim they are victims of "hatred", Alinsky's tactics are alive and well on FR.)
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To: dragnet2

You’re absolutely correct, that’s why I detest the LSM.


22 posted on 02/15/2010 10:29:42 AM PST by SZonian (I see people who claim they are victims of "hatred", Alinsky's tactics are alive and well on FR.)
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To: TexasFreeper2009
I would dissolve the union, throw its leaders in jail, and give everyone a 25% pay cut for pissing me off.

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.

23 posted on 02/15/2010 10:41:29 AM PST by gunsequalfreedom
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To: dragnet2
Like California's corrupt state government, Virgina is no different...

I didn't say it wasn't but CA is the poster child for this financial debacle we all face.

24 posted on 02/15/2010 10:42:29 AM PST by Altura Ct.
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To: TigerLikesRooster
If the Unions were smart and pragmatic they'd take the cut.

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.

25 posted on 02/15/2010 10:48:54 AM PST by Mariner
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To: SZonian

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.


26 posted on 02/15/2010 11:05:41 AM PST by DeweyCA
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To: TigerLikesRooster
We face the same issues on a smaller scale. One of the problems is that so much of the budget of local governments is non-discretionary. The larger programs - human services, mental health and public health are federal programs that the state has accepted and to which the state provides a funding match. Local county governments are also required to provide a small match and are responsible for delivering the program. Roads are another big budget and that funding mostly comes from gas taxes or federal funds through the state.

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.

27 posted on 02/15/2010 11:13:30 AM PST by marsh2
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To: TigerLikesRooster
This is a 1983 article from Atlantic magazine, but still very relevant for today.

VOTING FOR UNEMPLOYMENT: Why union workers sometimes choose to lose their jobs rather than accept cuts in wages

28 posted on 02/15/2010 12:16:33 PM PST by Califelephant
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To: dragnet2

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”?


29 posted on 02/15/2010 12:38:17 PM PST by screaminsunshine
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To: dragnet2

Why any government employee needs to be “unionized” is beyond me.


30 posted on 02/15/2010 1:42:16 PM PST by woodro43
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To: woodro43

Government unions are by far the most corrupt, and harm the tax payers far more than any other private sector labor unions.


31 posted on 02/15/2010 1:59:14 PM PST by dragnet2
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To: dragnet2; goldstategop; TigerLikesRooster

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.


32 posted on 02/15/2010 3:40:10 PM PST by 4Liberty ( we have a rat problem .)
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To: DeweyCA

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.


33 posted on 02/15/2010 3:51:52 PM PST by OregonRancher (Some days, it's not even worth chewing through the restraints)
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To: 4Liberty

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.


34 posted on 02/15/2010 5:58:07 PM PST by dragnet2
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To: TigerLikesRooster
Hi! I worked for local government in CA during the recession of 1991, and our department was reduced by 85%, I repeat, eighty-five percent: 185 employees to 37.

I survived the cuts, but was "bumped down" a classification, and lost income of at least 10%.

This is what is necessary.

35 posted on 02/15/2010 10:35:19 PM PST by happygrl (Continuing to predict that 0bama will resign)
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To: dragnet2

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.


36 posted on 02/16/2010 9:33:51 PM PST by woodro43
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To: DeweyCA

I hear ya, I live in Tustin. If this AB-32 nonsense is approved this state is done for good.


37 posted on 02/16/2010 9:40:47 PM PST by woodro43
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To: woodro43
Government unions are by far the most corrupt, and harm the tax payers far more than any other private sector labor unions.

Agree

You bet.

38 posted on 02/17/2010 9:04:30 AM PST by dragnet2
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