Chick Urges Restraint on Budget

On the heels of a strong 2005, the local economy will continue to grow, but at a slower pace, predicted City Controller Laura Chick in her annual report on revenue projections for the City of Los Angeles.

Chick cautioned that the City should show restraint in its upcoming budget. "The City's propensity to spend in excess of its revenues could create a crisis unless we develop an effective method of keeping the budget within the City's revenue generating capacity," wrote Chick in her letter to Mayor Villaraigosa.

"The Document Transfer Taxes from the sizzling real estate market have helped counter budgetary shortfalls during the last three years. However, real estate sales are declining and revenue from the Document Transfer Tax will be less than last year," said Chick.

Chick's letter to the Mayor also highlighted the following issues:


* The affordable housing crisis continues to not be adequately addressed.

* While taxable sales continue to increase the City of Los Angeles is missing opportunities to capture more of the dollars with the type of retail centers and establishments that are successful in smaller, neighboring cities.

* Los Angeles' motion picture industry is threatened by other states that offer incentives and attractive operating environments.

* The City should consider increasing its reserve fund to 5% of General Fund revenues within the next decade.

Overwhelmingly re-elected City Controller in 2005, Chick has worked diligently with the mandate of the new City Charter to save taxpayer dollars, improve City services, eliminate waste and fraud and open up the City's books. To access her website, visit www.Lacity.org/ctr.