November 25, 2009 | 1:26 pm

Los Angeles could be facing a $1-billion deficit by the time Mayor Antonio Villaraigosa wraps up his second term in 2013, a dire forecast driven primarily by escalating employee pension costs and stagnant tax revenues, the city’s top budget analyst said today.



The grim budget outlook comes a day after the city’s credit rating was downgraded by Fitch Ratings, which will probably make it more expensive for the city to borrow money.



City Administrative Officer Miguel Santana, L.A.'s top budget official, told the City Council that deep, severe cuts to departments and services are unavoidable if the city hopes to repair its finances, and that both the mayor and council must consider creative ways to raise revenue, including privatizing the Los Angeles Convention Center and L.A. Zoo.



Closing the budget shortfalls in the years ahead also will require significant reform of the city pension systems, such as creating a lower tier of benefits for retiring city employees. That would require voter approval, Santana told the council.

