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LA Controller Forecasts A $231M Hit To The City's Bottom Line With Steeper Declines Coming

How hard is the coronavirus pandemic hitting city government?
Without a major infusion of cash from the federal government, things look fiscally bleak here in Los Angeles.
L.A. City Controller Ron Galperin released a revised revenue estimate today that forecasts a $231 million hole in the 2019-20 budget and an even bigger gap next year. The city’s 2020-21 budget could have a revenue shortfall “between $194 million and $598 million, depending on the length of the current shutdown and the speed at which the economy begins to recover," Galperin said.
“The City is facing an unprecedented crisis due to the coronavirus pandemic, and our revenue outlook is much darker than it was even a month ago. While these struggles are not unique to Los Angeles, our City is in a better position than most municipalities because of the diversity of our revenue streams and healthy Reserve Fund balance.”
The full report is available on the controller’s website.
During his Tuesday evening briefing, Mayor Eric Garcetti said his team is writing a proposed budget "as we speak." It’s due to be presented to the city council no later than Monday, April 20. The budget needs to be passed by the council by June 1.
"There's no question though, that we are going to have cuts,” Garcetti added, before making a plea to Congress and the White House for more bailout money for local governments in the next round of COVID-19 relief spending.
MORE ON REVENUE WOES:
This developing story will be updated.
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