City's Deficit Grows to $222 Million, Even With Newly Found Cash
Los Angeles budget officials today reported an increase in the city's budget deficit. "The 2009-10 Budget deficit is now estimated at $222.4 million," a report released today said. The new number, which was previously $212 million, is based on $36.8 million in savings, the unexpected $26 million in increased property tax revenue and the loss of, thanks to a standoff over the controversial carbon surcharge rate hike, $73.5 million power revenue transfer from the LADWP. If that transfer would happen, the deficit would be reduced to $148.9 million. The $222.4 million number also reflects approved budget-saving actions, but the report warns not all of them, like eliminating 1,000 positions, have been "fully implemented."
By the end of the fiscal year (June 30th), the city's reserve fund, which should be at $350 million, will be at $39.3 million, according to estimates. Still, Councilman Eric Garcetti yesterday said he believes the city could come out of this fiscal year in $100 million in the black.