When a politician says something is "not an option" that generally means it is (or soon will be). Sometimes it means it is all but certain. With that in mind, please consider Mayor Villaraigosa says no bankruptcy for the city.



With city officials declaring that "bankruptcy is not an option," Mayor Antonio Villaraigosa released a long-term plan for the city's finances Thursday, including several billion dollars in potential savings and possible layoffs of 1,000 workers.



In a letter to City Administrative Officer Miguel Santana, the mayor and City Council leaders called for the start of steps needed to make layoffs and perform studies on dealing with this year's continuing shortfall of $200 million and the projected $400 million deficit for next year.



"This mayor has no interest in going down the road to bankruptcy," said Deputy Mayor Matt Szabo, who has been assigned the task of developing the overall financial strategy for the city.

My Comment

The five-page letter from Villaraigosa, also signed by Council President Eric Garcetti and council members Bernard Parks, Jan Perry, Greig Smith and Dennis Zine, sets the stage for a series of decisions to reduce spending in the city's $7.01 billion budget.



There are no plans to ask voters for a tax increase, but the mayor is looking at whether a ballot proposal will be needed to reform the city's pension system.

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Santana's office also released a report showing the city's revenues continue to decline, particularly in consumer-sensitive areas such as hotel and sales tax. Also, holiday season sales were much less than expected.

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Part of the problem for the city is that although there is general consensus that the economy has begun to improve, local government is the last area to see any benefit.

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Parks, who chairs the Budget and Finance Committee, is planning a series of public hearings around the city, with the first scheduled for 6p.m. Monday at Van Nuys City Hall. The city also has been conducting an Internet survey on what the public would prefer to see cut.

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"We will consider the elimination, consolidation or outsourcing of city assets and services, furloughs and layoffs where permissible," the letter said.

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Cuts in service and outsourcing being considered could be for services like cleaning restrooms at parks, Szabo said.



"We are focusing our attention on what services must be performed by a city worker," Szabo said. "No one is going to argue that police and fire services should be contracted out. That is a core city service. Other services the public demands, we might be able to provide cheaper."

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Options looked at for the long term include either the sale or private operation of assets such as parking facilities, golf courses, the Los Angeles Zoo, Animal Services and the Van Nuys and Ontario airports.

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"Gridlock and partisanship is not an issue here like it is in Sacramento," Szabo said. "This mayor and this City Council are working together to address our problems."

My Translation

The mayor remains committed to the growth of the Los Angeles Police Department. "The mayor's goal is to protect the gains made by the police," Szabo said.

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