City Council To Vote On 600 Job Cuts In $7B Budget

LOS ANGELES (CBS) — A proposed $7 billion budget plan is expected to be approved on Wednesday in a vote that aims at avoiding layoffs.

KNX 1070’s Claudia Peschiutta reports the plan would eliminate an additional 600 city positions to close the city’s $336 million budget deficit.

“This budget charts a course. It gives us a path to stabilize our city’s revenues and expenditures in the midst of this financial crisis,” Mayor Antonio Villaraigosa said after releasing his budget proposal in mid-April.

Villaraigosa said the city already has eliminated 4,200 jobs and cut more than $1 billion over the last two years.

The budget closes much of the city’s $336 million deficit by reducing police overtime, redeploying firefighters and lowering the city’s share of retiree health care costs. It also includes a one-time transfer of $18 million from a parking revenue fund to the city’s general fund.

Despite projected revenue increases from business, property and hotel taxes, city officials expect the budget will leave a $280 million hole in the 2012-13 fiscal year, largely from increasing pension costs.

The budget requires a simple majority of the 15-member council for approval.

(©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 This material may not be published, broadcast, rewritten, or redistributed.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.)


More From CBS Los Angeles

KNX 1070 Newsradio
Follow Us On Twitter

Listen Live