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LA WATCHDOG - City Controller Kenneth Mejia submitted six recommendations (see below) to the Charter Reform Commission which will dramatically increase transparency, accountability, and fiscal responsibility. Unfortunately, most of these well thought out recommendations will not make it to the ballot because the Mayor and the City Council will perceive them as an assault on their imperial powers.
The first recommendation is to give the Controller an independent budget that is not subject to the whims of the City Council. This would allow the Controller to hire additional personnel to carry out charter mandated and efficiency audits and additional waste, fraud, and abuse investigations. Additional oversight is needed, especially given the Structural Deficit of over $600 million over the next four years and the City’s inefficient and poorly managed operations.
This year, the Controller’s budget is $23 million, or 0.3% of the General Fund. An increase to $30 million (0.37%) would fund the audit and investigative functions as well as the daily operations of paying vendors and meeting payroll on a timely basis. $7 million is a small price to pay for greater transparency and accountability.
The second recommendation is to appoint the Controller as Chief Financial Officer, consolidating the function that is now handled by the Mayor, the City Council, the City Administrative Officer, the Office of Finance, and the Controller. The current arrangement leads to huge inefficiencies, the lack of accountability, and budget deficits. This was evident when the Mayor, Council, and CAO overestimated revenues by over $220 million, which coupled with budget busting labor agreements, created a billion-dollar fiscal crisis.
This would result in dramatic structural changes as the Controller would provide real time budget and financial information to our elected officials and the public. This will increase transparency and accountability. The CFO would also develop long-term financial and capital infrastructure plans that will help the City address its $600 million Structural Deficit.
The Controller is also asking for the authority to conduct performance audits of City programs, including those controlled by elected officials. It would also allow the Controller to conduct an audit on the Mayor’s problematic Inside Safe program as well as other sacred cows.
There are three other recommendations, including that the Controller has the necessary experience and qualifications, that the Controller may hire outside counsel when there is a conflict of interest with the City Attorney, and that its Fraud, Waste, and Abuse function be incorporated into the Charter.
It is unlikely that the politically appointed Commissioners will follow up on the Controller’s recommendations. And even if they did, the City Council will have the opportunity to gut any recommendations that the Councilmembers believe impinge on their imperial rights or provide unwanted transparency.
There are, however, ways that Angelenos can demand reform. In June, the Mayor and the odd numbered Council Districts will be on the primary ballot. Even more so, it is anticipated that the City will be placing measures on the ballot that will raise taxes or authorize billions in general obligation bonds.
At that time, we will understand what reforms the City is or not proposing. And if the reform agenda is not up to par, voters can send a message by voting NO on any tax increases. That is a me$$age our elected elite will understand.
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These are the six Charter Reform recommendations that the Controller outlined in his 11 page, 4,000 word letter to Charter Reform Commission. Enjoy.
1. Give the Controller an independent budget
2. Designate the Controller as the City’s Chief Financial Officer
3. Require minimum qualifications for the Controller
4. Clarify the Controller’s audit authority includes performance audits of ALL City programs that are sourced from or use City tax dollars (including those under elected offices)
5. Allow the Controller to hire outside counsel
6. Enshrine the Controller’s Fraud, Waste, and Abuse function
(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].)
