Editor’s Note: City Controller Wendy Greuel released a grim city economic forecast for the next fiscal year (3-1-11 2011-12 City Economic Forecast.pdf) and called on the Mayor and City Council to act quickly to take dramatic steps to reduce spending, not one-time temporary solutions. She warned that “city government will look dramatically different in five years, both in its size and scope of the services provided.” Here is her press release:
CITY CONTROLLER WENDY GREUEL RELEASES CITY’S ECONOMIC FORECAST FOR 2011-2012
Local Unemployment Projected to Drop to 11.7%. City’s General Fund Revenues To Be the Lowest Since 2006-07
With the City of Los Angeles facing a $350 million budget deficit next year, the City’s chief accountant, City Controller Wendy Greuel, released the economic forecast for the City of Los Angeles for the upcoming fiscal year 2010-11.
“I’m pleased that our local unemployment rate is projected to drop from 12.4% to 11.7%, however there are still far too many Angelenos out of work and we project that the City’s economic growth with be slow and sluggish in the coming year,” said City Controller Greuel. “Overall, we expect the City to receive $6.336 billion in revenue next year, which is $130 million less than the $6.466 billion the City is expected to receive during the current fiscal year. Additionally, the City’s General Fund is projected to receive $4.25 billion in revenues, a decrease of $126 million since 2006-07.”
The Controller provides this economic forecast to the Mayor and City Council each year so they can have all of the relevant fiscal information as they create the City’s budget for the following year. Every year the Controller meets with leading local economists, reviews the economic forecasts of UCLA, the State Department of Finance, the State Legislative Analyst Office and the Los Angeles County Economic Development Corporation to compile a projected economic forecast for the coming year.
“The Mayor and City Council cannot – and should not – count on an increase in tax revenue to help balance the City’s massive budget deficit for next year,” said City Controller Greuel. “While we anticipate tax revenue for the current year to be dramatically lower in almost every category, we project that 4 of the 7 tax revenue streams will actually increase next year. Unfortunately the anticipated decrease in property tax will outweigh any other revenue increase.”
With the City already facing a $54 million budget deficit this year and a projected $350 million deficit next year, the Controller urged the Mayor and City Council to act quickly, but strategically as they make the necessary cuts to balance the City’s budget.
“I know that the cuts that the Mayor and City Council will be making in the coming weeks and months will be difficult and drastic. City government will look dramatically different in five years, both in its size and scope of the services provided,” said City Controller Greuel. “The City needs to first identify which specific core functions it plans on providing to Angelenos and then shift our resources to meet those needs, not the other way around. For instance, furloughing or laying off employees in revenue generating positions seems counter-productive as the City explores opportunities to generate additional revenue. The services provided by City government should not be driven by what positions employees were able to transfer into, but by a clear policy on the City’s priorities given the current – and looming – budget deficits.”
Some of the highlights of the report include:
· For fiscal year 2011-12, the Controller anticipates that property tax receipts are expected to decrease by $24 million.
· The Controller also projects that business tax and licenses permits and fess will decrease, while sales tax, utility users tax and transient occupancy tax will increase.
· Additionally, for the fiscal year 2011-12, the Controller projects that the City will receive a decrease in various transfers from other funds, including Special Parking Revenue Fund – $10 million, Power Revenue Fund – $4.8 million and Telecommunications Development Account – $4 million.
· The Controller anticipates the City needing to borrow $450 million in Tax and Revenue Anticipation Notes (TRANs) next year to cover cash flow.
· The City will be required to pay $628 million in debt service next year.
Wendy is an idiot. All she’s done since becoming Controller is do reports yet doesn’t have one solution to help the city. So many are disappointed in her job performance. I hope the 2 names that have been thrown out there decide to run for Controller and for sure NOT ZINE
Three press releases in one day wow!
Is she running for Mayor or something?
…http://www.dailybreeze.com/news/ci_17504580
A great candidate if you are for IBEW/DWP, raising pensions, ruining the budget, cutting back services, etc.
She was part of the problem of getting LA in its financial crisis as a Councilwoman voting with the 99% crowd and has shown her loyalty by not releasing DWP salaries.
If you vote for Greuel, you are voting for Antonio’s 3rd term.
We are not going to elect a hypocrite as Mayor. We have one already. Wendy is responsible for the City being in these financial straits. She is a sell out and we will keep reminding her that, now that she officially made her intentions known. Press releases of B.S. audits won`t cut it. Wendy, do you think you can beat Zev? If you really think so, you are dumber than you look. As they say; Let the games begin.
Wendy, Antonio`s gang cannot elect you. The citizens of L.A. have seen thru Antonio`s consiglieri. Let`s move past pretenses and deal with reality. The City is hurting. We need true leaders not ambitious idiots.
Wendy, are you going to be running for Mayor while we are paying your Controller`s salary? BTW, where is the L.A. Weekly, forget the LA Slimes, in doing the same analysis for Wendy`s calendar as they did for the 15% Mayor? I quarantee it would be a big revelation! Future candidates take note. I KNOW!!
Wendy is part of the reason why this city is in such bad shape. Her audits are the results of bad decisions she made while she was a councilwoman. It’s like the kid who kills their parents, then cries that they’re an orphan.
Why would she want to be Mayor? It doesn’t make sense unless she’s just a front for AEG and Antonio’s corrupt posse.
This city needs knew blood.
Now that L.A. is gutted by corruption, might as well join one of the “families” that runs L.A. So I’ll be in the Katersky Gang. Now let’s cut that deficit for L.A. Here’s how:
1/ Eliminate the City Attorney’s budget: With a Corrupt City, no need to do legal research or bother with the “Law.” President RizzoGarcetti makes all the laws in L.A.. Savings: $220,000,000,
2/ Give NAMING RIGHTS to various City Landmarks
example: CITI can remane: CITIHALL. Chavez Ravine can be “DORITOS PARK.” This would easily generate 50-100 MILLION A YEAR!
3/ Give full license for all supergraphics and billboards all over L.A. Then tax them all and overregulate them. Income: $10-20 million net
4/ Eliminate all free parking spaces in L.A.
Require homeowners to pay a “stipend” to park in front of their homes (you know, in front of the sidewalks and trees the schmuck homeowners now have to care for.) Income: $100,000,000 a YEAR!
5/ Sell Sepulveda Blvd from Wilshire blvd to
Ventura Blvd AS A PRIVATE TOLL ROAD!! $400,000,000!
6/ Sell the libraries to Richard Riordan (hell, he already has his name on the big one Downtown)
$1,000,000,000. that’s ONE BILLION BUCKS!
So, see, how easy it is to get that deficit all under control?
Remember, next Tues: YOUR VOTE DOESN’T MEAN A DAMN THING. SO VOTE FOR FUN, NOT SPORT.
(Oh, I’m sorry, that’s the ‘inner Katersky’ talking:-)
@March 2, 2011 9:05 PM
1. Wendy becomes Mayor.
2. Zine becomes Controller.
From LA Weekly:
“L.A. City Hall is headed for a $400 million budget hole, so you know city departments are really tightening their belts.
Oh wait, they’re not. They’re spending like it’s 1999, and salaries are on course to be $32 million over budget by the time the fiscal year ends in June.
Brilliant. According to city controller Wendy Greuel and L.A. budget chief Miguel Santana, the projected overspenders include:
-The City Attorney’s office, which is headed for nearly $9.4 million in spending over its budget.
-General Services: $4.1 million.
-Information Technology: $2.8 million.
-And the LAPD, with a whopping $10 million”.