Wednesday, February 3, 2010

Los Angeles

Mayor Villaraigosa’s Response to the City’s Financial Problems
Jennifer Halligan

       The city of Los Angeles has not been immune to the state’s economic crisis. It is estimated that next year the city will have a $400 million deficit (
def: when spending outpaces revenue). Mayor Villaraigosa has made it a goal to avoid bankruptcy. In January, he and other City Council leaders laid out a plan to cut spending. There are no immediate plans to raise taxes, but the decision will likely lead to outsourcing (def: some city jobs will be contracted to employees from other areas) and lay-offs, so that the government has to spend less money on paying workers. 
      To avoid lay-offs, Villaraigosa said that public employee unions (def: an organization of workers united for common interests) should consider reducing their pay, and workers should agree to pay 9% of their salaries toward their pension (def: retirement plan) rather than 7%. Council members are considering many different options, such as moving employees from current jobs to ones at the Port of Los Angeles and Los Angeles World Airports that aren’t affected by decreasing tax revenues.
       In addition, Mayor Villaraigosa is encouraging Angelinos to take part in the 2010 Census (
def: an official evaluation of the population). He has said that in the past that city residents have avoided participation, and the city has not been allocated the correct amount of state and national funds. In March, the city plans to start a campaign to “Get Out the Count” and encourage people to fill out the census forms.

  • Information on the census can be found at http://www.lacounts2010.org/
  • Argument for: These solutions should help with city financial problem
  • Argument against: Some people will lose their jobs or get paid less

For further reading:
- http://www.contracostatimes.com/california/ci_14243142?nclick_check=1
- http://latimesblogs.latimes.com/lanow/2010/01/villaraigosa-says-layoffs-not-the-only-budget-solution.html
- http://www.dailybreeze.com/news/ci_14224590


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