LA Faces $22M Budget Shortfall If ‘Fiscal Cliff’ Deal Isn’t Reached

LOS ANGELES (CBSLA.com) — Los Angeles could face at least a $22 million shortfall if a deal isn’t reached in Congress by Tuesday to avoid the “fiscal cliff,” according to the city’s top budget analyst.

City Administrative Officer Miguel Santana said public safety services, like police and fire departments, could face up to a 10 percent reduction in grants if nothing is done about the federal spending cuts and tax hikes that would go into effect on Jan. 1.

The Los Angeles Police Department’s DNA labs, a program for fighting internet crimes against children and homeland security operations could be affected by the financial crisis, as well.

Transportation projects and services for the homeless and the elderly may also take a hit, said Santana.

CBS2/KCAL9’s Dave Bryan reported the city cuts could also force the mayor and the City Council to consider layoffs of positions funded by federal grants.

On Friday, President Obama had what he called a “constructive meeting” with congressional leaders at the White House to discuss how to limit the damage of the “fiscal cliff.”

(©2012 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 This material may not be published, broadcast, rewritten, or redistributed.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.)

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