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June 12, 2007
Metro Recovers $40 Million
To be exact, the number is $39,404,362 and it comes from the Department of Water and Power for overcharging utility costs according to a press release from Metro.
Metro along with several other governmental agencies have won a joint lawsuit against DWP, charging that the DWP was over billing the agency for utility services over an eight year period. DWP is to pay back approximately $225 million in overcharges to several government agencies that include the Los Angeles Unified School District, the University of California at Los Angeles, the Los Angeles Community College District, the County of Los Angeles and California State Agencies.
With $40 Million, what would you do with LA County's Transportation Agency? Keep in mind, $40 Million really doesn't go that far. For example, the Orange Line expansion to Chatsworth (that's about 5 or so miles of busway, not even light rail) will cost an estimated $135 Million. But hey, ever million helps.
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Apparently, no one realizes this is more than just a 40 million dollar settlement. Fans of this site who live in the City of LA should see this as a threat to their quality of life.
Why? you ask.
Well, first, this $40million is a part of $223 million that DWP and the City will have to pay back. Additoinally, the City budget will be impacted by $184 million dollars related the now-deemed-illegal transfer of funds from the "Power" side of DWP. So, the City budget will take a hit at $407 Million dollars. That means all those services we've gotten used to over the past few years may be cut: extended library hours, additional street repaving and tree trimming, sidewalk repair, new police officer hires.
Unless something can be done to raise additional revenues, in the next few months, the City is going to have to drastically change its spending. Look out, people. This could get ugly.