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HIGH PRIORITY ALERT: L.A.’s phony city budget set to blow up under state raid on local funds

Posted on July 22, 2008 by

L.A. city officials were warned Monday in a “high priority alert” from Chief Legislative Analyst Gerry Miller that a deal is near in the state legislature that will cost L.A. $150 million this year and create a budgetary — and political catastrophe — when next year’s budget is put together in the spring. 

"On top of the $350 million gap the CAO projected for 2010during the budget this past spring, that could mean a totalhit to the City of half a billion dollars in fiscal year 2010," Miller wrote City Council members and their chiefs of staff.

"Below is some additional information about the proposal andstrategies calling and writing the governor and legislativeleaders. Anything you can do to contact the State and let themknow how seriously this will impact us and all cities would behelpful. It is critically important to try and get the governornot to pass an emergency resolution, which is the first stepin the borrowing. From the governor's statements, he is opposedto the borrowing.  However, given the State's situation, therewill be significant pressure to put a plan in place very soonand it is important to communicate our strong opposition."

The State could run out of cash in early August, and legislators areconsidering borrowing against Prop 1A, but also Prop 42, Prop 63, Prop 10, and Prop 49.

The state Department of Finance "has prepared a scenario where theycould justify taking Prop 42 (for relief of transportation congestion)without any obligation to repay. No one has seen the text of that scenario."

"One scenarios is that the legislature agrees to release far more Bondmoney than originally planned, in an effort to back-fill other localfunds taken. The political problem is that voters were promised thatthis was additional money, not back-fill money."

Miller's advice to city officials is to send letters to the governorand key legislators.

Why that sounds almost like ordinary people pleading for mercy from ourhigh and mighty government officials, formerly known as public servants.

One of the interesting elements of this is that I've heard public speechesby three city council members from different parts of the city recently usealmost the exact same language in describing the city's own budget crisiswas covered up raiding every dollar lying around and various tricks ofpapering over the problem.

In each case, they said words to this effect: "We've done a great job inmanaging the city's finances in difficult times. The problem is the statehas a $14 billion deficit and they're going to take our money away from us." 

So who wrote the script? Gerry Miller? The army of lobbyists, P.R. andpolitical operatives, the mayor's office?

Folks, I've been around a long time and I'm here to tell you that if youbelieve these people and the games they play, you deserve the governmentand the city you got.

Wake up! It's the money. The money they take out of your pockets and giveto special interests and then come whining for me with the same special interests backing up their pleas for more of your money.
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10 Responses to HIGH PRIORITY ALERT: L.A.’s phony city budget set to blow up under state raid on local funds

  1. Anonymous says:
    July 22, 2008 at 8:13 pm

    It’s gonna hit in the spring, uh? Let’s see, that could be during a mayoral runoff. I guess now we know why Antonio is scouring the country for campaign contributions to keep anybody from challenging him.

    Reply
  2. anonymous says:
    July 22, 2008 at 9:04 pm

    Ron,
    This terrible news, but I’m not shocked or surprised. My question is: what are we supposed to do about it??? We are nothing more than fleas on an elephant’s back, as far as the elected crooks are concerned!
    The crooks stay up all night devising 101 ways to tax us, the latest being plastic bags. We have been pillaged and plundered more than anyone can even imagine!
    And what about the $200M that Schwarzenegger announced for first time home buyers??? We KNOW that the particular areas for this giveaway are predominantly hispanic, as is the case of the sub-prime debacle. ALL of the areas that were foreclosed upon were predominantly hispanic! Garnders and maids who had a combined income of $35K/year getting conforming loans of $417k!
    So, please let us know what we can do about it, if anything.

    Reply
  3. Walter Moore says:
    July 22, 2008 at 10:27 pm

    “. . . to keep anyone from challenging him.”
    I’m challenging him, and I’ve raised over $115,000 so far.
    My name is Walter Moore.
    My website is http://WalterMooreForMayor.com.
    If you’re fed up with recycled career politicians, take five minutes to review my credentials and platform, and if you like what you see, support my campaign. (That’s politician-speak for “send money”).

    Reply
  4. Anonymous S says:
    July 23, 2008 at 5:19 am

    Since the Ronald Reagan years the country has been progrevessively moving toward a fascist state where corporations rule.
    Just look at the ugly new names on baseball parks.
    * * * * *
    In a bold move to avert declaring bankruptcy, Gov. Arnold Schwarzengger sold California to Mattel, which is sure the deal will bolster their earnings after two consecutive quarterly loses.
    “Were’re going to move the entire state to China where the jobs are, mortgage rates are low and the cost of gas is a few cents a gallon,” said Mattel spokesman Yuri Outtahere.

    Reply
  5. Anonymous says:
    July 23, 2008 at 11:33 am

    In addition to not budgeting for maintenance of this fountain (or the costs of water and power — how MUCH is that as we’re supposed to conserve?), they have to pay a security guard round the clock because the locals were using it as a dipping pool. Who’s paying for that security, which with benefits must cost $50,000/ year at least? (Private security is a lot less, but anyone who works for the city probably has to be unionized.)

    Reply
  6. Anonymous says:
    July 23, 2008 at 11:56 am

    Re: California’s Budget Shortfall
    It is critically important to try and get the Governor to NOT pass an emergency resolution, which is the first step in the borrowing from monies approved by the California voters designated for other purposes.
    From the governor’s statements, he is opposed to the borrowing. However, given the State’s situation, there will be significant pressure to put a plan in place very soon and it is important to communicate strong opposition.
    SITUATION:
    * The State runs out of cash in early August, maybe by Aug. 4. They may be rushed to do something before then to prevent higher cost borrowing.
    * The State is considering borrowing against Prop 1A, but also Prop 42, Prop 63, Prop 10, and Prop 49.
    * DOF has prepared a scenario where they could justify taking Prop 42 without any obligation to repay.
    * One scenarios is that the legislature agrees to release far more Bond money than originally planned, in an effort to back-fill other local funds taken. The problem is that voters were promised that this was additional money, not back-fill money.
    RECOMMENDED ACTIONS:
    1. Let the Governor know how important it is to the citizens of California for him to support local governments and oppose borrowing. He made these statements in both his budget and May revise proposals, as well as verbally on the Charlie Rose show.
    2. We oppose any borrowing or take-away. We need to hit both in case that rumor concerning Prop 42 is correct.
    3. Advise Budget Committee chairs and share the same concerns. The budget is out of their hands now, but they are still consulted in the on-going budget process.
    4. Please convince the Governor to NOT pass an emergency statement concerning the budget, which is the first step to the borrowing action.

    Reply
  7. Anonymous says:
    July 23, 2008 at 12:39 pm

    OOPS, 11:33 comment was supposed to go under the San Pedro Fountain post, prior.
    Re: the state swiping Prop 1A funds: LAST year the state stole $1.2 BILLION from Prop 1A, which we paid in “surplus gas taxes” specifically for LOCAL Transportation. We were led to believe that when a measure gets 2/3 likes this at the polls, it’s ironclad to go where promised, but clearly not — no wonder people don’t trust politicians; there’s a way to legally get around the voters’ will and move this money into the State General Fund.
    WHY CAN’T THERE BE MORE IRONCLAD LANGUAGE? When the Council debated this issue in Council this a.m., there was a lot of indignation but I didn’t see this underlying issue addressed. Some were wrong about where to assign blame: Alarcon, of course, blamed “the Republicans” namely Arnold, but I recall from last year that Arnold only did this as a last resort, after the Assembly couldn’t balance the budget. Wesson raised the issue that he’d almost rather our Prop IA be raided by the state, if the alternative is cuts to healthcare and other benefits for indigents. BUT he’s wrong here: it’s NOT upto him, the voters approved all our our paying a lot more for gas in recent years ONLY for LOCAL TRANSPORTATION and there’s a fundamental issue of public trust. (Even leftie Rosendahl got that right — although he’s pushing for a full 1c MORE sales tax hike.)
    NONE of them mentioned or were apparently aware that since the state moved $1.2 BILLION from 1A into the General Fund LAST year, this is nothing new, and in fact LESS than last year. (Zev has talked about this in Transportation forums, but I’ve not heard anyone else do so.)
    So if they’re going to make a big issue of it (as they should, especially as the State wants to raise sales taxes by 1c just to repay this “loan” which it’s self-appropriating) they should emphasize that this is the second year WE will pay twice for nothing: first, the “surplus” gas taxes stolen last year and this totaling over $2 BILLION, THEN ALSO PAYING THE EXTRA 1c SALES TAX AS A PENALTY WE MUST PAY FOR MONEY STOLEN FROM US. How’s that for government “logic?”

    Reply
  8. Anonymous says:
    July 23, 2008 at 4:12 pm

    11:33: See David’s post on above/ Fountain Thread, noting that an item passed today giving CD15/ Hahn/ San Pedro $50,000 — exactly the amount it takes for the full time security guard for the fountain.
    – But what about next year? This fee waiver is for one year only; will Hahn try to get the amount funded annually under some other guise, like Recs & Parks? (Isn’t there also a security guard for the one at Griffith Park, or was anyway — in that case, to guard against graffiti? Which might explain why Hahn/ LaBonge co-sponsored this motion for the San Pedro Fountain guard?)

    Reply
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