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Los Angeles reeling under rising budget deficit

English.news.cn   2010-12-14 09:39:30 FeedbackPrintRSS

LOS ANGELES, Dec. 13 (Xinhua) -- Los Angeles' budget deficit for the 2010-11 fiscal year has ballooned to 87.84 million dollars from 63.7 million two months ago, authorities said on Monday.

If no effective measures were taken, the situation could get worse, prompting the city "to identify mitigating solutions beyond those identified in the operational plan including layoffs, additional furloughs, curtailed hiring or other reductions," City Administrative Officer Miguel Santana said in a report.

The city's various departments have submitted financial plans that would reduce the overall deficit to 23.65 million, but a recently identified police-uniform allowance added 9.5 million to the deficit picture, according to the report.

The deficit would jump by another 53.2 million if the parking- privatization issue isn't addressed, said the report.

The report noted that the city needs to complete plans to privatize the operation of nine city-owned parking garages.

Santana said earlier that the contracts could generate millions for the city, with 53.2 million being earmarked to cover employee salaries and other expenses in the current fiscal year.

The rest of the money would be used to replenish the emergency reserve fund; pay off about debts related to the parking garages; and help reduce the estimated deficit projected for the next fiscal year.

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Editor: Xiong Tong
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