Dan Walters: L.A. budget troubles hold a lesson for the Capitol

Sacramento Bee ^ | 2/16/10 | Dan Walters

[SmithL]

California, with its complex mélange of cultural, demographic and economic forces, may be, some observers contend, just a concentrated microcosm of the United States, telling the rest of the nation what it can expect as the 21st century unwinds.

If that's true, Los Angeles is a microcosm of California. That makes the city's budget crisis not only a reflection of the state's own chronic fiscal woes, but also a case study of the countervailing political forces.

Los Angeles is contending with budget deficits of $600 million-plus over the next 18 months. But it has a liberal mayor, Antonio Villaraigosa, and an even more liberal City Council, so in theory it should take the liberal approach to solving woes, which would mean keeping spending cuts to an absolute minimum and seeking new revenue.

Except that it isn't, or can't. Villaraigosa, who cut his political teeth as a labor organizer, is sounding like a conservative, budget-cutting Republican as he presses the council to slash city payrolls and other spending.

"There just aren't unlimited options here," Villaraigosa told the council in a rare public appearance the other day. "We can't continue to say no to everything. We can't say no to layoffs, no to furloughs, no to department eliminations. … The fact is, we can't sustain this business model."

Villaraigosa was highly critical of city unions, saying, "They took too long in their negotiations, and saying 'no' to virtually everything. We took too long in not making a tough decision."

The council, which is closely tied to unions, has stalled on the 1,000 layoffs Villaraigosa wants to order.

[SmithL]

The council, which is closely tied to unions, has stalled . . .

There is the problem.

[goldstategop]

The problem is the unions own the Democratic Party. Which can't change things and so because it won't, look for LA to default soon.

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

[C19fan]

/src on/What a shock/src off/ a de-facto 3rd World City decides to opt for the Banana Republic solution. That billboard off one of the freeways stating “Los Angeles, Mexico” was more spot on then we thought.

[Oldpuppymax]

So why not just raise taxes! That’s easy and it ALWAYS works so well!!

[goldstategop]

In California, Proposition 218 constrains local tax revenues. These must be voter-approved and the government can charge no more than the cost necessary to provide the service. So LA cannot just taxes willy nilly anymore. And voters overwhelmingly rejected a statewide parcel property tax a few years ago.

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

[Publius6961]

For the curious or the masochists...

Calif Prop 218