Zuma Dogg just got done reviewing the City's annual budget and either Big ZD made a mistake, or Villaraigosa doesn't know how to do a budget.
According to the calculations I just did in my head, the City of Los Angeles is $300 million behind on the budget -- and counting. (Total budget=$6.8 billion)
Of the $625 million in City utility tax money, around $300 million comes from DWP shady user taxes.
First, there's loss of over $30 million in "water transfer taxes".
And, there's the loss of $270 million in cell phone excise tax which was declared illegal by the Federal government. (No more excise taxes.)
Illegal fees applied in the past are not only lost, but perhaps a lawsuit for DWP to pay back years of lost amounts of illegal billing.
That dumb-jackass of a mayor Antonio Villarashmosa is now going to have to ask all 45 departments to cut by 5%. (Except for his travel and "entourage" budget, which MUST be increased! So don't look there. $300 million is 5% if total budget.)
LOW RESERVE FUND, TOO -- AND THE TIMING COULDN'T BE BETTER
With only $120 million in the reserve fund, there is nothing to make up the deficit.
And if I remember correctly, the City of Los Angeles is REQUIRED to keep 2% of the total budget in a reserve fund. $88 million is the required minimum you can have in the fund. Currently, the City has $93 million in the reserve, but they need $128 million.
Being DESPARATLEY close to the bare minimum in the reserve fund (the City's savings account, Villaraiogsa has no way to meet City emergencies!!!
So I think I'm gonna give LA Shitty Council a call, and see if there are some new and creative ways to think of some new fees and taxes to create.
Everyone, please paypal the Mayor some money for the City because it is $300 million short this year, and a savings account about as sparce as Big ZD's. So PLEASE be careful, cause if there are any emergencies, too bad...no hay dinero! So Janice, Richard, and other Councilmembers, please add new fees and hike taxes to help cover the deficit. The mayor has a lot of hiring and flying to do!
AND IF ANY READERS HAVE SOME GOOD NEW FEES AND TAXES WE CAN STICK THE CONSTITUENTS WITH, POST THEM AS COMMENTS ON THIS THREAD.
I'll start with one: "Air Access Fee". Not to be confused with "air rights". There is a lot of air contained within the city limits that people use each day for things like breathing. We charge for water and other natural resources. Why just give away City air. So I would start there.
Anonymous said...And when/if the real estate market declines are they doing next year's budget based upon this year's property tax collection? Forget about any reserve! This city is an Enron. Garcetti and others should stop bragging about what a great bond rating we have. If I were a Wall Street analyst, I would give this city a D rating!
Labels: mayor antonio villaraigosa