According to Parks, we're spending a million dollars a day more than we have, and will run out of money by May (having spent our entire "reserve" fund, too). The Councilman says there are, as of yet, no convincing ways to avoid this, as the Mayor's call for "shared sacrifice" has thus far fallen on dead ears.
Among the biggest challenges is finding enough ways to either raise income or reduce services within a budget where over 90% can not be touched. That amount is dedicated to union paychecks, pensions and benefits which are among the most costly in the country, and none of the unions has responded to the Mayor's plea.
On October 10th, Los Angeles will hold what's called the "Mayor's Budget Day" .. purportedly an opportunity for residents to give the Mayor's office input on how to adjust the remaining 10% of the budget that's actually used to provide City services (for the vehicles, supplies, equipment, etc, as well as for running buildings, providing fuel, electricity, phone service, copying and for the running of our commissions).
Don't kid yourself. There's not that much to "adjust."
Would you like to skip paving streets? How about repairing sidewalks? Forget about public transportation?
Let things that need fixing wait? Maybe we should discontinue all but the essential public safety needs?
To be sure, there are a handful of residents aware of what's going on .. a tiny group of activists who are beginning to understand the magnitude of our problems.
But the vast majority of Angelenos seem detached from the looming disaster, one which may be as severe to Los Angeles as the inevitable 7.0 earthquake.
I am hoping more of us will take the time to educate ourselves about the way LA's budget works .. and I'm talking some time to assist.
My years in activist circles in Los Angeles have shown me that a relatively small group of well informed but dedicated residents can make a difference if they take the time to show up and participate in city business.
Several of my activist friends are more knowledgeable than me, and I have asked them to help me illuminate the situation in which we find ourselves.
Here's a presentation my friend Ron Kaye prepared for his OurLA web site. The videos he included are devoted to specific (and alarming) pieces of the Councilman Parks presentation we attended last weekend.
I hope you'll find them illuminating ..
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Parks Warns City Spending Is Out of Control, Layoffs Needed
Written by Ron Kaye
from OurLA.org
September 5, 2009
Using the strongest language yet by a city official, Councilman Bernard Parks said Saturday the early retirement plan offered to city workers is dead and layoffs and other drastic measures are needed to avoid a financial crisis that could force the city into bankruptcy.
Speaking for more than two hours to the LA Neighborhood Council Coalition at a meeting in West LA, Parks reported the city is spending $1 million a day more than is budgeted and the $350 million in savings projected by the mayor doesn't exist.
Despite borrowing $1.1 billion -- twice what is normal -- to provide the cash flow needed to pay its bills and meet its payroll, the city likely will run out of cash by May and have a difficult time borrowing more cash except at unacceptable interest rates.
The sweetened retirement package intended to eliminate 2,400 workers is no longer financially feasible since it does little to defray costs short term while adding to the billions the city already needs to pay to its pension funds to keep them whole.
Parks will hold a Budget Committee hearing at 1 p.m. Sept. 14 to go over the details of the worsening budget crisis and outline the "severe pain" the city faces in terms of layoffs and reduced services. The Council will take up the issue the following day.
Here are video excerpts of what Parks had to say:
http://ourla.org/index.php?option=com_content&task=view&id=516&Itemid=3233
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A Solution
Some of my friends asked me last night if I had a solution .. and I do ..
There's a movement afoot now to require a 50% reduction in Councilperson's pay, to reduce their salaries by half. While this might appeal to some as a "punitive" measure, I find it counter-productive, primarily because the amount we'd save isn't even a drop in the bucket of what we need but also because punishment isn't the point. Sacrifice is.
So .. I have a solution. But don't tell anyone I suggested it because to be effective it'll have to appear as if it came from one of our 18 elected officials (LA has only 15 Councilmembers, a Mayor, a City Attorney and a Controller) .. whoever wishes to be seen as a true leader.
My suggestion? That one of the politicians mentioned above take it on themselves to approach the other 17 with a proposition to take a voluntary 25% pay cut.
The result of such leadership, such out-of-the -box thinking could be stunning.
First of all, it would probably stop the "reduce elected officals' salary by 50%" effort in its tracks.
But more than that it couldn't fail to impress the constituents .. the stakeholders and voters .. of the sincerity our politicians have in understanding the concept of "shared sacrifice" .. while still keeping their paychecks relatively healthy, by any standard.
I'd next suggest that, as a group, these officials THEN approach each of the unions, asking for a mere 10% reduction in salaries and benefits from their members, so that the City could continue to function at a reasonable level, with no one losing their jobs.
It would be difficult to out-of-hand refuse to consider a 10% cut when the City Officials had already voluntarily reduced their pay by 25%.
Not that this will work, but .. one often must lead by example, and requesting a "shared sacrifice" must begin with ME.
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