L.A. city budget shortfall grows to nearly $1 billion, with layoffs ‘nearly inevitable‘ (1 Viewer)

[trumptman]

L.A. city budget shortfall grows to nearly $1 billion, with layoffs 'nearly inevitable'

Faced with a nearly $1-billion budget shortfall, the Los Angeles City Council met behind closed doors to take a fresh look at its salary agreements with labor unions.

www.latimes.com

Pay raises for city employees that are scheduled to go into effect in the coming budget year are expected to consume an additional $250 million. On top of that, Szabo said, the city needs to put hundreds of millions into its reserve fund, which has been drained in recent months in an attempt to balance this year’s budget.

“The severity of the revenue decline, paired with rising costs, has created a budget gap that makes layoffs nearly inevitable,” he said. “We’re not looking at dozens or even hundreds of layoffs, but thousands.”

Expect to see many more stories like this in the coming months. Many blue states and cities were saved by COVID funds and then via Federal deficit spending with unique means of routing the money to these various agencies and groups.

Now the stark reality is coming and it will get ugly.

As is noted part of the reason the budget shortfalls need to be addressed head on is that many blue states and cities “balanced” their budgets last year by tapping reserves and “cost shifting” with a common tactic involving putting the 12th fiscal month into the next full budget year by shifting the pay and benefits over a few days.

So a ll the problems from last year and this year are now coming down as a double whammy.

It isn’t just going to be Trump issuing executive orders and laying off and firing people. These blue states and cities are going to be doing the same or worse and of course we will all witness the massive double standard in the courts and media when this happens. I’ll look forward to seeing who posts the first links from the courts telling Karen Bass she can’t stop spending money or layoff or fire people.

Good luck finding it though since it likely won’t happen for Democrats.

 

[OrphanSlug]

While Los Angeles is not alone in this issue, they are sure putting themselves at the top of the list at what not to do with a city (or county) budget.

 

[BirdinHand]

Expect to see many more stories like this in the coming months. Many blue states and cities were saved by COVID funds and then via Federal deficit spending with unique means of routing the money to these various agencies and groups.

Now the stark reality is coming and it will get ugly.

For every $1 sent to the federal government via taxpayers? CA receives back only $.84-$.95 of that dollar.


Meanwhile, there are Republican-led areas - let's take Oklahoma City (pop around 700K - one of the largest Republican-run cities in the US) as a counter-example.

They have a budget deficit also - much smaller, but still there.

The difference? For every $1 folks in Oklahoma they send to DC via federal taxes? They get back $1.2-$1.4 in federal dollars.


Let's break it down to deficit per capita for LA vs. Oklahoma City:

• LA's per capita deficit: ~$260 per person
• OKC's per capita deficit: ~$15.70 per person

• Los Angeles, CA: Estimated per capita federal tax contribution is at least $10,408.
• Oklahoma City, OK: Estimated per capita federal tax contribution is at least $8,687.

I do suspect that we will be seeing quite a few impacts from what is going on at the federal level on local communities and states.

But I suspect that the red areas - that are MUCH more heavily dependent upon federal tax dollars - will be the ones that struggle, not the blue ones.

LA' has a big deficit. But they also have a LOT of people. $260/person? Shit...the $.15/dollar of their tax dollars that goes to OK and other red areas is equivalent to more than $1500/person in blue state subsidy to those red states. OK is behind the 8ball by $15.70/person. And that's when they're getting $10,424 for every $8,687 they send to DC.

Who is actually doing a better job managing the money they have locally?


Because the math from where I'm sitting says that LA is.

And I'd be more than happy to go into state and local taxes also if you'd like.

 

[SNOWFLAKE]

While Los Angeles is not alone in this issue, they are sure putting themselves at the top of the list at what not to do with a city (or county) budget.

Yeah but................................................. we must make note that LA is one of them librul cities in one of them leftwing loony states - California. That has to be the commentary.

 

[SNOWFLAKE]

For every $1 sent to the federal government via taxpayers? CA receives back only $.84-$.95 of that dollar.


Meanwhile, there are Republican-led areas - let's take Oklahoma City (pop around 700K - one of the largest Republican-run cities in the US) as a counter-example.

They have a budget deficit also - much smaller, but still there.

The difference? For every $1 folks in Oklahoma they send to DC via federal taxes? They get back $1.2-$1.4 in federal dollars.


Let's break it down to deficit per capita for LA vs. Oklahoma City:

• LA's per capita deficit: ~$260 per person
• OKC's per capita deficit: ~$15.70 per person

• Los Angeles, CA: Estimated per capita federal tax contribution is at least $10,408.
• Oklahoma City, OK: Estimated per capita federal tax contribution is at least $8,687.

I do suspect that we will be seeing quite a few impacts from what is going on at the federal level on local communities and states.

But I suspect that the red areas - that are MUCH more heavily dependent upon federal tax dollars - will be the ones that struggle, not the blue ones.

LA' has a big deficit. But they also have a LOT of people. $260/person? Shit...the $.15/dollar of their tax dollars that goes to OK and other red areas is equivalent to more than $1500/person in blue state subsidy to those red states. OK is behind the 8ball by $15.70/person. And that's when they're getting $10,424 for every $8,687 they send to DC.

Who is actually doing a better job managing the money they have locally?


Because the math from where I'm sitting says that LA is.

And I'd be more than happy to go into state and local taxes also if you'd like.

BUT....................................
never mind red state cities, we talkin' about that librul paradise LA, with all them gangs and DEIs and PROgressives and such. We gotta focus on LA.

 

[BirdinHand]

BUT....................................
never mind red state cities, we talkin' about that librul paradise LA, with all them gangs and DEIs and PROgressives and such. We gotta focus on LA.

I'm trying my very best to set aside the biases that individuals tend to bring to the table about cities and just look at math.

Probably an exercise in banging my head against a wall...

 

[stealthycat]

slashing jobs
not even considering what they're doing
irresponsible
hurting community and employees

the horror !!!

 

[trumptman]

For every $1 sent to the federal government via taxpayers? CA receives back only $.84-$.95 of that dollar.


Meanwhile, there are Republican-led areas - let's take Oklahoma City (pop around 700K - one of the largest Republican-run cities in the US) as a counter-example.

They have a budget deficit also - much smaller, but still there.

The difference? For every $1 folks in Oklahoma they send to DC via federal taxes? They get back $1.2-$1.4 in federal dollars.


Let's break it down to deficit per capita for LA vs. Oklahoma City:

• LA's per capita deficit: ~$260 per person
• OKC's per capita deficit: ~$15.70 per person

• Los Angeles, CA: Estimated per capita federal tax contribution is at least $10,408.
• Oklahoma City, OK: Estimated per capita federal tax contribution is at least $8,687.

I do suspect that we will be seeing quite a few impacts from what is going on at the federal level on local communities and states.

But I suspect that the red areas - that are MUCH more heavily dependent upon federal tax dollars - will be the ones that struggle, not the blue ones.

LA' has a big deficit. But they also have a LOT of people. $260/person? Shit...the $.15/dollar of their tax dollars that goes to OK and other red areas is equivalent to more than $1500/person in blue state subsidy to those red states. OK is behind the 8ball by $15.70/person. And that's when they're getting $10,424 for every $8,687 they send to DC.

Who is actually doing a better job managing the money they have locally?


Because the math from where I'm sitting says that LA is.

And I'd be more than happy to go into state and local taxes also if you'd like.

So it sounds like you would be very in favor of someone doing a lot of cutting of spending and shuttering of Federal programs and agencies who are supposedly enabling all that subsidization.

I’m sure that is where ou stand on the matter right?

 

[BirdinHand]

These blue states and cities are going to be doing the same or worse and of course we will all witness the massive double standard in the courts and media when this happens. I’ll look forward to seeing who posts the first links from the courts telling Karen Bass she can’t stop spending money or layoff or fire people.

Regarding this highlighted?

I've PERSONALLY participated in laying off more people in my lifetime than I ever wanted to. Economic conditions change, businesses change, markets change, and circumstances sometimes simply dictate that downsizing is necessary.

There is a RIGHT way to do things and there are lots of WRONG ways to do layoffs, especially mass layoffs.

The difference between people accepting when Bill Clinton or Obama or another president downsizing government departments? Cut spending, etc. versus what is currently happening is NOT simply "because it is Trump"

It is HOW it is being done.

HOW you handle layoffs, especially massive layoffs - matters.

 

[Phys251]

L.A. city budget shortfall grows to nearly $1 billion, with layoffs 'nearly inevitable'

Faced with a nearly $1-billion budget shortfall, the Los Angeles City Council met behind closed doors to take a fresh look at its salary agreements with labor unions.

www.latimes.com

Expect to see many more stories like this in the coming months. Many blue states and cities were saved by COVID funds and then via Federal deficit spending with unique means of routing the money to these various agencies and groups.

Now the stark reality is coming and it will get ugly.

As is noted part of the reason the budget shortfalls need to be addressed head on is that many blue states and cities “balanced” their budgets last year by tapping reserves and “cost shifting” with a common tactic involving putting the 12th fiscal month into the next full budget year by shifting the pay and benefits over a few days.

So a ll the problems from last year and this year are now coming down as a double whammy.

It isn’t just going to be Trump issuing executive orders and laying off and firing people. These blue states and cities are going to be doing the same or worse and of course we will all witness the massive double standard in the courts and media when this happens. I’ll look forward to seeing who posts the first links from the courts telling Karen Bass she can’t stop spending money or layoff or fire people.

Good luck finding it though since it likely won’t happen for Democrats.

Righties rooting against the California economy, again. News at 11.

 

[MauiMan]

slashing jobs
not even considering what they're doing
irresponsible
hurting community and employees

the horror !!!

Oh, what a pathetic post! Slashing jobs isn't automatically some grand tragedy. Companies do it all the time to stay lean and survive why should they coddle everyone? If they're not considering the impact, maybe that's just smart business, not irresponsibility. Communities and employees get hurt, sure, but isn't it worse to let a failing company drag everyone down with it? What's your solution keep dead-end jobs alive out of pity?

 

[BirdinHand]

So it sounds like you would be very in favor of someone doing a lot of cutting of spending and shuttering of Federal programs and agencies who are supposedly enabling all that subsidization.

I’m sure that is where ou stand on the matter right?

I am not and have never been opposed to actual transparency in government spending and audits and evaluations as to HOW the government is spending money.


It is OUR money as taxpayers and it is the responsibility of government to be good stewards in how they spend it.

Please let me know when we can expect that from this Administration. Thus far, they've not provided any proof of fraud or of any ACTUAL waste (simply not liking how Congress authorized money to be spent =/= fraud or waste)

If OK needs $1.2 for every dollar, OK needs $1.2 for every dollar.

They probably do - their state sucks in just about everything locally.

76% of the kids in that state can't read.
84% of them suck at math.
They're ranked 47th in healthcare outcomes
15.9% of their state lives in poverty (national average is 12%)
More than 20% of their children live in poverty


See, that's the difference between me and MAGAs.

I'm not opposed to spending money to help the people that need it NOR am I opposed to making sure the government is spending the money they way the money is intended to be spent.


But I don't run around yelling "fraud" or "waste" when there is no evidence of fraud or waste. And, I don't want to see them "hurt" simply because they believe differently than me or vote differently than me. That's a MAGA thing.

(Although at this juncture...I've reached the point where I'm perfectly fine with MAGA voters eating the FO side of the equation. Talking to them and explaining math and the law and that all people have civil rights, etc. is about as effective as trying to teach my lab puppy to tap dance. She might be getting closer to learning the lessons)

 

[aociswundumho]

• Los Angeles, CA: Estimated per capita federal tax contribution is at least $10,408.
• Oklahoma City, OK: Estimated per capita federal tax contribution is at least $8,687.

Los Angeles, CT per capita income: 46K
Oklahoma City, OK per capita income: 37K

Isn't redistributing income from wealthy LA to OKC something any good communist would support?

 

[aociswundumho]

Pay raises for city employees that are scheduled to go into effect in the coming budget year are expected to consume an additional $250 million.

Thank goodness! These poor public servants in LA are grossly underpaid.



Remember that she could earn much, much more than that in the private sector!

 

[BirdinHand]

Los Angeles, CT per capita income: 46K
Oklahoma City, OK per capita income: 37K

Isn't redistributing income from wealthy LA to OKC something any good communist would support?

You oppose taxation, period based on post after post after post. You oppose government, period.

I still can't understand why you continue to live in society instead of off in the woods off the grid somewhere.

Isn't that what someone opposed to taxation and government would support or do?

 

[aociswundumho]

I still can't understand why you continue to live in society instead of off in the woods off the grid somewhere.

How about we finish one point at a time? Explain to me why you are against redistributing wealth from relatively rich LA residents to poorer OKC residents.

 

[BirdinHand]

How about we finish one point at a time? Explain to me why you are against redistributing wealth from relatively rich LA residents to poorer OKC residents.

Where did I state that I was?

You're so fast to want to argue a point, you've not bothered to even read all of what I've typed.

 

[Phys251]

Los Angeles, CT per capita income: 46K
Oklahoma City, OK per capita income: 37K

Isn't redistributing income from wealthy LA to OKC something any good communist would support?

Did you adjust for poverty levels and cost of living? Or did you not learn that lesson in your statistics class?

 

[aociswundumho]

Did you adjust for poverty levels and cost of living?

Do you support adjusting income tax rates for cost of living?

 

[Phys251]

Do you support adjusting income tax rates for cost of living?

I asked you first. Answer the question.

 

[aociswundumho]

Where did I state that I was?

Right here:

For every $1 sent to the federal government via taxpayers? CA receives back only $.84-$.95 of that dollar.

Meanwhile, there are Republican-led areas - let's take Oklahoma City (pop around 700K - one of the largest Republican-run cities in the US) as a counter-example.

They have a budget deficit also - much smaller, but still there.

The difference? For every $1 folks in Oklahoma they send to DC via federal taxes? They get back $1.2-$1.4 in federal dollars.

 

[aociswundumho]

I asked you first. Answer the question.

Lol, I'll take that as a no.

 

[TobyOne]

Both the CA state government and now LA city government is in fiscal crisis. Taxes are already sky high. Nowhere to go but down. Expect more crime and homelessness in LA.

 

[TobyOne]

Yes, that well known righty news outlet, the LA times.

Righties rooting against the California economy, again. News at 11.

 

[Phys251]

Lol, I'll take that as a no.

So you're not going answer my question, but you arrogantly demand that I answer yours, which you asked second.

Let me know when you're ready for an honest debate!