DWP To Slash $440M With Hiring Freeze, Exec Perk Cuts

LOS ANGELES (CBS) — The Department of Water and Power may have found a way to save buckets of money — but it could end up in hundreds of job losses.

KNX 1070’s Jon Baird reports the belt-tightening is aimed at cutting up to $440 million from the budget.

Officials say there are some things they cannot cut — they still have to deliver water and power — and they have to replace aging infrastructure like the spate of busted water mains plaguing the city.

But GM Ron Nichols says the department can slash its budget with a hiring freeze, bond refinancing and other potential moves like eliminating corporate credit cards and executive take-home cars.

“We’re cutting where we can cut, so we can move forward,” said Nichols.

While he does not believe layoffs are necessary, Nichols warns the reduction in workforce should mean about 500 fewer workers overall.

Mayor Antonio Villaraigosa, meanwhile, praised the proposed cuts and said it’s clear from the presentation that it’s a significant move.

“You’re talking about real money over a three-year period of time,” said Villaraigosa.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

  • Sandi A

    DWP should have (as well as the City & County) eliminate company cars. Remember what happened with Rocky Delgadillo’s car. HIS

  • TT

    Smart move :) Now just add all the company cell phones to that illimination process -except the ones that are absolutely required and you will save a bundle… :):) But you are absolutely on the right track :) chudos !!

  • Stinky Slit

    What’s killing America are the Unions, Overtime Pay, Pensions, & Health insurance.

    • JIM

      What’s killing American are the big corporations thats end jobs overseas and like General Electric (owner of NBC) they pay NO taxes. But don’t worry when the republiclans take American back to the 1800’s with only white property owners having the right to vote then you can work for 2 dollars and hour, no health insurance, and no home. The tea party when they talk about going back to the “original” constitution are using their code words for slavery, no rights, etc.

      • Duh!

        Why do you think the big corporations are sending jobs overseas (AKA outsourcing)???

        Because it is cheaper to fix the problems caused by outsourcing than to pay union wages for the same job. I still do not understand why people do not understand economics. Company A sells something for $10 and uses union labor. Company B sells the exact same thing for $5 but does not use union labor. Which company is going to go out of business and which company will have their product bought by the public?

  • Ron Senger

    Lets make sure that the workers in the differnet City Departments make the same money for the same work. You can no longer justify a 20% premium for he DWP label.

  • Mike

    Sounds good but I still don’t trust the DWP.

  • rescued sammie

    Will DWP be offfering cash or other retirement incentives for their employees to leave like they have done in the past ?

  • MS

    DWP should not be under the control of IBEW. This is why the salaries of employees are way up. Let all employees have equal salaries with the rest of City employees and you will really see the true budget.

  • http://losangelesforme.com/2011/04/dwp-to-slash-440m-with-hiring-freeze-exec-perk-cuts/ DWP To Slash $440M With Hiring Freeze, Exec Perk Cuts | Los Angeles for Me

    […] The Department of Water and Power may have found a way to save buckets of money — but it could end up in hundreds of job losses. More from: http://losangeles.cbslocal.com… […]

  • Bob

    DWP should use more solar panels on City buildings, that would save alot of money.

  • MarkH

    Eliminating corporate credit cards will actually raise costs. The same things will have to be bought, but it will take more paperwork and involve more people and time. Just a political move.

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