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Your Taxes at Work: State and Los Angeles Budget Updates
Nothing really happened yesterday in the capitol other than the Democratic plan to fix the budget went nowhere (for those following the possible closure of most all state parks, this means more time to advocate). Now Senate President Pro Tem Darrell Steinberg is vowing to work everyday to pass the budget by July 1st. If that date is not met, the state will begin sending IOUs instead of payments to bills. Here's to another day of being $24 billion in the red.
More locally, Los Angeles is coming closer to closing in on its own $530 million deficit, which some say could be $1 billion next year if worker pensions are not figured out. A "labor agreement would call for workers covered by the Coalition of City Unions to forego a cost of living raise for up to two years and increase their contributions to the pension system to pay for an early retirement program," explained the Daily News. However, the LA Chamber of Commerce iscalling bullocks on the proposal calling it a "massively unfunded and unsustainable" pension liability.
Making the local budget situation even worse, local funds could be raided with devastating results. Mayor Villaraigosa led a coalition of mayors this week calling on state lawmakers not to undermine local governments in trying to solve the state budget deficit.