Shared Sacrifice: You Pay More and Get Less

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The LA City Budget now enacted into law without a single line-item veto is not worth the paper wasted on printing it or the ink of the mayor's signature.

It's as phony as the baloney of the "Shared Responsibility and Sacrifice" slogan used to sell it.

For one thing, there's a $326 million payroll hole that can only be filled by furloughs, wage increase deferrals, layoffs, buyouts, sweetened retirement packages -- none of which the unions have agreed to despite many months of talks. Then, there's the problem of the $60 to $120 million the state is about to "borrow," which will put the deficit back to the just about where it was when the process began a month ago.

You can be sure the final deal with the unions will provide as soft a landing as possible.

Not so for the public. It is a certainty that public services will be cut sharply: Libraries, street paving, planning, code enforcement, everything even that sacred cow the LAPD will have fewer cops on the street.

Everything that is except the city's cash cow, the DWP (DWP-Budget.pdf).

There, the sacrifices will be entirely the public's. With a long list of pass-throughs, the cost of water will rise 16 percent and power 28 percent, probably even more. Pass-throughs, for the uninitiated, are surcharges for renewable energy and purchased water that don't have to go through the normal rate hike process and the DWP wants to lift the cap on how much they can charge extra for these costs by up to 4,000 percent.

Yet, there's no talk of furloughs, wage increase deferrals, layoffs, buyouts, early retirement. In fact, the DWP added 300 workers this year and plans to keep on increasing wages -- even in the face of its own massive pension liability problem.

The mayor's message (Mayor Budget Letter.pdf)to council approving the budget captures -- in all of its contradictions, deflections and obfuscations-- just how pathetic the city leadership has been in dealing with this crisis.

"Our work on this budget, however, is far from complete," Villaraigosa conceded. "The nature of the economic crisis will require us to calibrate and adjust the budget to constantly evolving realities. The duration and depth of the recession, the impact of the state budget crisis on the city and the outcome of negotiations with our labor partners remain uncertain."

In other words, forces beyond the city's control are the problem -- not the failure of the mayor and the council to do anything about employee salaries and programs that are, and were for years, unaffordable.

The ship of the city is sinking and the captain is oblivious, planning trips to Kenya with his latest TV anchor flame while the council is allowing 600 marijuana dealers to operate legally on every street corner and approving massive high rises that will clog the streets with more traffic and use up more of our precious water and power resources.

Burning Rome and fiddling Nero got nothing on LA.

Quit your job, close your business, sell your house, run for your life. Sorry, it's too late for that. You're just going to have to stay and fight or remain apathetic and helpless while the fat-cats feast and the city rots.

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16 Comments

I went to the DWP Budget chart on page 7 of their budget from 09-10 to 13-14 and there is an item for ADDITIONAL funding required showing that right now they need $12M and by 13-14 they
will need $477M. We do not have nor will we
ever have that kind of money for pensions.

I can remember when DWP handled their own budget with income received in the department and the city never saw a dime. Then it was decided the city would handle it and the issue is worse than it ever was because now they simply spend money and come back to the public to pay higher prices or be taxed for the deficits.

Something is definitely rotten in Denmark (I mean Los Angeles). TH

Ron, is there anyway to get a private company come in and compete with the DWP to provide power?

Might put an end to their nonsense if possible.

Phil, this is a guess, but what you're suggesting might be doable IF Los Angeles City declares bankruptcy and the private competitor is worked into the new City business structure. Unless that happens, I wouldn't count on any private competition.

Add this WTF!?! story in the Daily News and read the comments.

Interest-free Loans for home down payments in the East Vally only.

http://www.dailynews.com/breakingnews/ci_12510401

That's not new news. This program has been on the books for months. They're just now finalizing it.

Add this to that. If you heard Doug McIntyre this morning...there is no water shortage.

Go to the Stockton Record online or redordnet.com and look for water articles by Michael Fitzgerald, he's an expert on how water is allocated in California.

DWP is already using "drought" as a cash cow hammer, when they and the city should be lobbying for changes in the law. In lieu of that, we should have been building reservoirs and desalination plants.

And the beloved DWP's Biggest Boondoggle Ever is making great strides - they are expected to file their "notice of intent" to destroy the Joshua Tree area while completely ripping off ratepayers with their "Green Path North" powerline and series of Remote Industrial Power Plants (Big Wind and Big Solar) this month. What a crock.

Meanwhile, none of us get AB 811 loans for rooftop solar, none of us get paid for clean, non-lethal power we produce on our homes and businesses, and the mercenary environmental destruction marches onward - towards TOTAL DWP MONOPOLY, even though there is more rooftop than we could ever need right in LA for 100% of LA's power usage.

Disgusting.

sheila, thats what Ron and his private profiteers want-they want the non-union big projects in the desert, whether we need them or not-ron and his ilk want to destroy and kill the dwp so private companies can buy the dwp and charge higher rates and get rid of union labor.

7:27 am = Brian D'Arcy or one of his ass kissers.

I remember reading about LaGuardia in NYC years ago. There is a gang running LAC right now and
they will not be easy to defeat. We now have
the evil empire running the show. When I say
UNION, it is not the people who had to join the union in order to get a job, the UNION I have learned to disrespect is also caLled ORGANI ZATION. And what they are doing, robbing the people, is a crime. They must be stopped and
from the messages we keep getting right here on Ron Kaye's expose, they will use fear and intimidation. My grandchildren do not need
them in their lives, but neither do I. I am not afraid of you. Killing people to instill fear
is an old trick. But the martyrs want us to win. Union members unite, the ORG is using you, too.

Great, Ron! So... when are you moving?

Obviously, due to the state budget crisis, not anywhere in California.

Phil, the only way that would happen is if Southern California Edison comes in and buys out LADWP and its infrastructure

But then rates would go up. Despite all the complaining about rate increases, LADWP rates are still lower than private industry.

Sheila, you're right in questioning policy but when you complain that there's more than enough rooftop to provide 100% of LA's power, that's just stupid. First of all, that'll be a ridiculous rate increase to pay for all that work. Second, there'd be no way to generate power when the sun isn't shining, which means higher rate increases to import power to prevent blackouts.

I sure am glad DWP sold its coal-fired generating plant in Utah. Now people here can feel better about the environment as their bills escalate and DWP's salaried work force escalates to make up the difference.

"600 marijuana dealers to operate legally on every street corner"

What is wrong with legal marijuana dealers?

I think marijuana should be legalized and be controlled just like cigarettes and alcohol. We could make a lot of money by taxing it. We would know the dose of THC, and it would not be cut with dangerous things. We would have it made by local "American made" companies. "Legal pot farms"

Our jails would not be full of small time offenders - they could be reserved for the illegal dealers. And if it's legal, there would be no incentives for the drug cartels to smuggle.

I don't use pot, but there is a place for it in society, and I think that it could be safer than alcohol.

robert, dope-the dwp never sold the coal fired plants-but you are a selfish prick who doesnt care about the environment-Ron pretends he does-cant you?

9:31, Robert may really be ON dope, you should check out his spelling on the previous thread.

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Catch Ron on the Kevin James Show on KRLA 870 at 9:30 p.m. this Wednesday night and as a regular commentator on NBC's innovative news show "The Filter with Fred Roggin." "The Filter" is broadcast on NBC's Raw Channel 225 at 7:30 p.m. Monday-Thursday with re-broadcasts of the previous night's show starting at 11:30 a.m. Tuesday-Friday on Channel 4. Here's links to the last two Monday night shows where Ron appeared with actress and regular commentator Debra Skelton: http://www.youtube.com/watch?v=AXZwzrtlF1E and http://www.youtube.com/watch?v=wCoGofOr07o and http://www.youtube.com/watch?v=Kr4NllJ67cM and http://www.youtube.com/watch?v=otUJ3HQWj0w

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About Ron

Ron Kaye

is the former editor of the Los Angeles Daily News who has become a community activist, helping to found the Saving LA Project. He writes on city issues in Los Angeles and is a frequent speaker at community groups on the need to get informed and involved in the effort to make LA a city of great schools and neighborhoods, a city with a healthy business climate and good jobs, a city where the people are respected and have a seat at the table of power.

Email Ron at ron@ronkayela.com