LA WATCHDOG-Over the next month, the Budget and Finance Committee will hold hours and hours of public hearings to review Mayor Eric Garcetti’s $8.1 billion budget.
But do not expect any big time budget battles as the deal on how to allocate our money has already been cut behind closed doors by City Council President Herb Wesson, Budget and Finance Chair Paul Krekorian, and Mayor Eric Garcetti. Of course, we will have some theatre as selected City Council Members will grandstand for their pet projects, possibly resulting in some minor changes.
We will hear about how our bold leaders on the City Council made the tough, politically unpopular decisions that came close to eliminating a projected billion budget gap.
But what we will not hear is that this billion dollar budget deficit was caused by the fiscally irresponsible City Council who agreed to massive increases in salaries, pensions, and benefits that outstripped the growth in revenues by $500 to $700 million a year. This deficit was financed on the backs of Angelenos by cutting back on the repair and maintenance of our already potholed streets and cracked sidewalks.
We will also hear the drum beat for the half cent increase in our sales tax to 9½% to fund the repair our streets and sidewalks.
But what we will not hear is that there are viable alternatives to fund the repair of our streets and sidewalks without the need to increase our sales tax to a job killing 9½%, one of the highest in the nation.
Nor will we hear that MOVE LA, a politically powerful transportation advocate, wants to increase our sales tax by another half a cent, resulting in a sales tax of 10%, the highest in the nation.
Nor will we hear about ending hundreds of millions in giveaways to well-connected real estate developers in DTLA or corporate giants like the $64 billion Westfield Group.
Nor will we hear about efforts to “benchmark” the City’s inefficient operations such as trash collection, street sweeping, or street maintenance.
Nor will we hear about reforming the City’s Cadillac healthcare plans by requiring co-pays and higher deductibles.
Nor will we hear about pension reform despite the fact that pension contributions have exploded over the last ten years and now consume over 20% of the General Fund.
Nor will we hear about the clandestine discussions about a pension tax designed to fund the $10 billion shortfall in the City’s very generous pension plans.
Nor will we hear anything about the monstrous Stormwater parcel tax that the City dumped on the County, a multibillion obligation that evoked the comment: “God gave us rain and you figured out how to tax it.”
Nor will we hear about charter reform where the City will be mandated to LIVE WITHIN ITS MEANS by balancing the budget, fixing our streets, and funding its pension plans.
Rather than conducting the same old budget hearings that puts everybody into a deep sleep, NOW is the time to have an open and transparent conversation about our City’s financial plight and the need for meaningful budget and pension reform.
Otherwise, say good night to the Street Tax.
Note: The Mayor’s budget assumes that the City workers will not receive any increase in salaries. If not, hold on to your wallets.
• Photo above: Councilman Paul Krekorian
(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee, The Ratepayer Advocate for the Greater Wilshire Neighborhood Council, and a Neighborhood Council Budget Advocate. Humphreville is the publisher of the Recycler Classifieds -- www.recycler.com. He can be reached at: [email protected]. Hear Jack every Tuesday morning at 6:20 on McIntyre in the Morning, KABC Radio 790.)
-cw
CityWatch
Vol 12 Issue 33
Pub: Apr 22, 2014