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LA WATCHDOG -
The City Controller’s Revenue Forecast Report for the upcoming fiscal year that begins on July 1 is $8.36 billion, an increase of $157 million, or almost 2%, over the estimated revenues for the current year’s estimate of $8.1 billion. This forecast, however, is $143 million below the revenue projected in the City’s Four-Year General Budget Outlook, increasing next year’s Structural Deficit of $91 million to almost $300 million when also adjusting for the added expenditures of $60 million related to the Police Department’s increased hirings.
So how will Mayor Bass, her budget team, and the Chief Administrative Officer develop a balanced budget that is required to be submitted to the City Council on April 20th.
This is made even more complicated because the budget requests from the City’s 41 departments are $700 million more than this year.
Questions include: How will the Mayor address the City’s lunar cratered streets, broken sidewalks, poorly maintained parks, and the rest of its failing infrastructure? How will the Mayor pay for Olympic related expenditures? How will the Mayor fund the Police and Fire Departments? And how will the Mayor fund the City’s homeless initiatives now that Washington, Sacramento, and the County are reducing funding for these programs?
Once again, the City is facing a budget crisis that will require another round of budget gymnastics. These will most likely include layoffs and furloughs (driving the bosses of the public sector unions crazy), the diversion of money from the City’s special funds, fee increases, and the additional cuts in services and public safety. And all this will be complicated because the Mayor and many council members are running for reelection and their need for endorsements by public sector union bosses.
Mayor Bass, her budget team, and the CAO will prepare a “balanced” budget by April 20th. But in the background, the political establishment anticipates that Angelenos will bail them out by approving $150-200 million of tax increases that will be on the June primary ballot. These involve increases in the hotel and parking taxes and a new tax on illegal pot shops. And in November, $400-500 million in additional tax increases.
At the same time, it does not appear that the Charter Reform Commission, the City Council, or the Mayor will place any meaningful budget reform measures on the November ballot.
Once again, Angelenos are the victims of the fiscal irresponsibility of the Mayor and the City Council who refuse to clean up their act and place meaningful budget reform on the ballot. They are holding City services and public safety hostage, demanding that we approve tax increases.
(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].)
