L.A. Will Generate $141 Million Less in Taxes Next Year, Says Report
If this fiscal year isn't bad city coffers--a $212 million deficit, prompting major cuts and thousands of layoffs--let's look at next year's, which begins on July 1st and has a projected $484 million shortfall. Add to that today's news from City Controller Wendy Greuel who says the coming year will be even more brutal in her economic forecast for 2010-2011.“While we believe that the City will see a modest economic recovery in the coming year, it would best be described as slow and gradual,” said City Controller Greuel. “Overall, we expect the City to receive $6.146 billion in revenue next year, which is $141 million less than the $6.287 billion the City is expected to receive this year.”
The forecast is based on expert opinion from leading local economists and economic forecasts from UCLA, the State Department of Finance, the State Legislative Analyst Office and the Los Angeles County Economic Development Corporation.
“The Mayor and City Council cannot - and should not - count on an increase in tax revenue to help balance the City’s budget next year,” Greuel warned, noting that some tax revenues will increase this year, but will still not save the budget. She expects the city wll have to borrow $550 million in Tax and Revenue Anticipation Notes (TRANs) next year to cover cash flow. This year, $400 million was borrowed.