The Budget Crisis
California has been dealing with a ballooning budget crisis for the past 8 months, but the latest flash point of major financial crisis is now hovering over the City of Angels. The city faces a budget deficit close to 1 billion, and could be effectively bankrupt by the summer. How is it even possible that one of the biggest and richest city in America be in such state of disarray?
Everybody in Los Angeles is feeling the pinch as city officials are randomly and drastically cutting spending. First cuts were made in education and social services, and it is now the turn of critical sectors of public life and basic safety to fall under the ax of deep budget cuts. The fire department, in an effort to cut labor cost, has been forced by the city to take crews and paramedic units off the job one day a week through fire stations around Los Angeles. And the cuts are likely to get more severe in the very near future.
Mayor Antonio Villaraigosa is increasingly facing the heat even from within the city council. Last week, Villaraigosa was greeted in the city council chamber by booing city workers after he announced an order to eliminate at least 1,000 city jobs. And there will be thousands more to come for next year indicated Villaraigosa.
“I do not see a scenario where there will not be layoff, not only this year but next year as well. We will not be able to meet our financial obligations sometime in the summer if we don’t act now,” the embattled Mayor s