LA’s Still Secret Budget Busting Labor Contract: What are Garcetti and Wesson Trying to Hide?

LA WATCHDOG--It has been 75 days since Mayor Eric Garcetti and City Council President Herb Wesson (photo) announced on August 5 that the City had reached a tentative agreement with the Coalition of Los Angeles City Unions for a four year contract that covers more than 20,000 full and part time City workers.  

It has also been about a month since the Coalition announced on September 23 that 94% of its voting members approved the new labor agreement. 

And yet, the terms of this backroom deal with the City’s public unions have not been disclosed to the public or the media despite numerous requests.  This leads to the obvious question: What are Garcetti and Wesson trying to hide? 

A preliminary analysis indicates that the terms of this contract will blow up the budget, resulting in red ink of $55 million in 2020 compared to a previously projected surplus of $68 million. 

At the same time, the four year budget deficit will explode from $37 million to almost $400 million. 

This annual deficit is before the impact of the City’s commitment to a hiring goal of 5,000 new civilian workers, some of which will fill vacancies created by retirements.  On a net basis, this aggressive program is expected to cost the City at least an additional $300 million a year when fully implemented.  To mitigate the adverse effect on the budget, new hires will have to be geared to the annual 2% to 3% increase in tax revenues, unless the voters approve a massive tax increase in our sales or property taxes. 

Overall, Mayor Garcetti and the Herb Wesson have bowed to the demands of the campaign funding union leadership by allocating any increases in City revenues, including any tax increases, to supporting the growth of the City’s poorly managed and inefficient work force.  The City’s hiring goals and overly restrictive work rules will also limit the use of more efficient independent contractors that, for example, should be hired to repair and maintain our lunar cratered streets and broken sidewalks. 

{module [1177]}

On September 1, the Editorial Board of our Los Angeles Times, frustrated by the lack of financial details on the new contract, called for greater transparency in labor negotiations, urging the City to develop its own version of the Civic Openness in Negotiation ordinance.  In the City’s case, the Times recommended that the City “commission an independent analysis of the short and long term impacts” of the new contract and that the City “allow plenty of time for the public to ask questions and raise concerns before the City Council and Mayor vote on final contracts.” 

The City Council’s schedule to review and analyze the new labor agreement is uncertain.  However, rest assured, the hot air coming from the occupants of the barnyard known as City Hall supporting this budget busting deal will send an aroma throughout the City that will alienate most Angelenos who will once again know that our Elected Elite have sold out to the campaign funding union leadership.

 

(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and a member of the Greater Wilshire Neighborhood Council.  Humphreville is the publisher of the Recycler Classifieds -- www.recycler.com. He can be reached at:  [email protected])

-cw

 

 

CityWatch

Vol 13 Issue 85

Pub: Oct 20, 2015