LA city budget gap widens to more than $750 million, despite recent labor concessions
Los Angeles city officials said Friday, Feb. 5, that the shortfall in this years budget has widened to $750 million, with the future of the economy remaining uncertain amid the enduring COVID-19 pandemic.
A report from City Administrative Officer Richard Llewellyn on Friday reinforced the ongoing budget struggles brought on by revenues projected to come in $600 million less that what had been anticipated at the start of the COVID-19 pandemic. But the projection no longer contains recommendations for eliminating city positions, following deals struck with civilian, firefighter and police unions.
Proposed furloughs and layoffs were avoided this fiscal year, ending June 31, after city employee unions struck deals to postpone planned raises.
The increase in the budget gap, from the nearly $700 million that had been anticipated in December, appeared to be due to furloughs no longer being implemented after the agreement reached with the civilian employees union. According to the updated report, the civilian employee unions agreement to delay two pay increases scheduled to go into effect this year led to $22.7 million in savings for the city in this fiscal year.
Read more: https://www.dailynews.com/2021/02/05/la-city-budget-gap-widens-to-more-than-750-million-despite-recent-labor-concessions/
(Los Angeles Daily News)