One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.
This is an archival story that predates current editorial management.
This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.
Greuel Warns of a Deeper Deficit Over Carbon Surcharge Fight
Photo by MenaceZeGreat via LAist Featured Photos on Flickr
If you thought the $200-million or so budget deficit, and thus the looming threat of 4,000 city hall layoffs, was bad, the recent standoff between the Los Angeles City Council and the Board of Water & Power Commissioners may dig the hole deeper.
Traditionally, the Board, which oversees the Department of Water Power, makes an annual $220 million transfer to the city's general budget, which pays for core services like police, libraries, fixing pot holes, etc. The DWP has already given about $143 million, but has withheld the remaining $73.5 million, enough to pay for 1,000 jobs. It soon turned into a quid-pro-quo situation--if the Council would approve Villaraigosa's carbon surcharge plan, which would raise electricity rates to go towards renewable energy and apparently help save the utility from a downgraded bond rating, the Council would receive the remaining balance and avoid bankruptcy.
The Council this week rejected Villaraigosa's rate hike in lieu of recommending a more modest one. The Villaraigosa-appointed Board in turn rejected that, trying to compromise with a rate hike between the Council's and Villaraigosa's. Nonetheless, the Council turned around and rejected the compromised rate hike.
Today City Controller Wendy Greuel wrote a letter to DWP interim head David Freeman urging for clarity on the DWP's plans. "If the Department does not transfer the full amount, the City's budget deficit for the current fiscal year would be $275 to $290 million." Does this mean that the city will be looking at laying off 5,000 employees?
One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief
