67.1 F
Los Angeles
Wednesday, Aug 17, 2022
-Advertisement-

Cutbacks Loom on New Budgets

Faced with the most severe economic conditions in nearly two decades, Los Angeles city and county officials today will unveil budgets that are expected to call for wide-ranging service reductions while also asking residents to pay more to finance government, the Los Angeles Daily News reports.


The budget squeeze comes as property and sales taxes – two of the main revenue sources for local governments – have plummeted to a combined loss that is expected to have a devastating impact.


The last time there was a drop in year-over-year sales tax revenues was in the early 1990s amid the last national recession.


“It is a long, dark tunnel for local government these days,” said Jack Kyser, chief economist at the Los Angeles County Economic Development Corp.


“You have the housing situation at one of its worst points, retail sales are down, and there is no immediate end in sight.”


Mayor Antonio Villaraigosa will release his spending plan – expected to be about $7 billion – and has already detailed a variety of cutbacks as the city faces at least a $406 million shortfall.


To try to close the gap, the mayor has said he plans to increase the trash fee to $36 a month for residents, boost zoo and library fees, and possibly eliminate 767 city positions.


On the county side, Chief Administrative Officer Bill Fujioka will release a spending plan that is expected to be in the $22.5 billion range.



Read the full Daily News story

.

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-