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Friday, April 09, 2010

Rosier Financial Outlook at 200 Spring Street?

"Council members smelling a rosier financial situation in budget crisis"

With a TGIF Happy Hour less than a hour away, lets share some positive news courtesy of City Council President Eric Garcetti, as reported by Dennis Romero at the LA Weekly.
It seems that City Council President Eric Garcetti is getting all wet, "by proclaiming that the City of Los Angeles, could come out of the budget crisis $100 million ahead".
First, lets use Garcetti's own words, as posted at the LA Weekly.
Dennis: Our work in February and March has resulted in further real savings that will total about $50-$65 million more by the end of June (end of our fiscal year). Combined with slightly better property tax receipts, we will be able to meet our obligations for this year. Nevertheless, I hope the DWP gives the transfer to the residents of the city that they promised to just two months ago. Combined with the actions we have taken and the slight revenue uptick, we could land at the end of the year about $80-$100 million in the black. I just wanted to give you the numbers in a little greater detail. And our cash flow problems will be fine, since we have enough money and we instructed our City Administrative Officer to figure out the proper amount of money from our reserve fund that we needed to meet payroll next month. We will make that transfer later next week.
All the best,
Eric Garcetti
In the words of Parque Esqueleto, "gosh durn it" I didn't know that the financial affairs at 200 Spring Street, were rebounding so swiftly.
This news was met by some with "scribegasmic musings" as posted by the "Westside Economist White Guy" Mark Lacter. wonder if Lacter was in need of some medical attention after so much written exertion?
But please indulge with me as I attempt to regain my grasp on reality?
With no apologies to Council President Garcetti, "short-term hosannas" cannot not gloss over the fact that no one within the elective domain on 200 Spring Street, has yet to articulate a long term strategic vision, to right the "capsizing and sinking vessel" that is the financial health of the City of Los Angeles.
In addition, the political cynic in me, sees all the week's theatrics, as being choreograph to present an distorted image of the true lack of political courage, that is counter to what is truly needed to tackle the budgetary issues at City Hall.
But as someone who believes that "we should live in the moment", I'll take a momentary break, to bask in the bit of good news, originating from 200 Spring Street.
Your thoughts..........
Scott Johnson in CD 14

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Anonymous Anonymous said:

Is the photo Parks Perry?

April 09, 2010 4:42 PM  

Anonymous Anonymous said:

Can you believe that the City has "found" $20M or $30M that they didn't know they had? Can you believe that the DWP rate hike may not be necessary?
Garcetti may be many things, but when he said "the numbers don't add up," he was right.

The Council, Controller and the Mayor are the biggest jokes going around the nation as outsiders stare in amazement at the way the nation's second largest City is run.

Of course the money wasn't found, it was there all the time, and there's probably more. It's just that there is nobody in City Hall who can be trusted to tell the truth. There is always, always, another agenda going on. This whole DWP rate hike is nothing more than VillarParker's way of sneaking in the money that he would have controlled if Measure B had passed.

I hope Cooley or the Feds start investigating what is really going on, because if the City of LA were a company listed on Wall St., the SEC would be all over them like a cheap suit.

This bunch of clowns make Enron look like a well run company. VillarParker makes Bernie Madoff look like a saint!

April 09, 2010 6:37 PM  

Anonymous Anonymous said:

Save that email. Garcetti will be eating it with mustard on a free range ham sandwich with organic arugala and vegenaise.

April 10, 2010 2:17 AM  

Anonymous Anonymous said:

Taking money out of the reserve fund which is all the city has for emergencies, does NOT mean solving the budget crisis just kicking the can down the road. Next year's deficit (end June '11) will be over $400,000 as projected by both Parks and Greuel. Eric just can't bear to give us bad news, preferring nice "kumbaya, we all came together and saved the city" moments.

The mayor may be bizarre and tone-deaf about pushing this green initiative tax now, like he was about pushing Measure B last year - but he did try to shake the council out of their complacency months ago. His threatening to shut down the city's services like libraries and parks 2 days a week may have actually gotten their attention at last. Too bad no one around him had the guts to tell him he couldn't do that under the charter - since he can't trust Trutanich, and didn't seem to consult his own personal lawyer first.

April 10, 2010 9:10 AM  

Anonymous Anonymous said:

Anon 9:10am " Next year's deficit (end June '11) will be over $400,000 ..."

That would be $400,000,000, as in four hundred million dollars.

April 10, 2010 11:39 AM  

Anonymous Anonymous said:

yes 11:39, meant those extra 0's. Or else the city would be looking good.

April 11, 2010 3:13 PM  

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