Articles

More About the Budget in Today’s News

February  8, 2010 – Los Angeles Times – Risks are Seen in L. A.’s Plan to Privatize Parking Structures –“Officials want to close this year's $212-million general fund budget gap almost entirely with money from an emergency reserve . . . depleting the emergency reserve would increase future borrowing costs . . .  replenish that fund with $100 million to $200 million in new parking garage revenue . . . trying to cut advantageous deals just as it is desperate for money -- not exactly a strong negotiating position for a public agency . . . aggressive blitz by the many lobbying firms that are paid to influence Villaraigosa and other elected officials . . . A rushed bidding deadline could lead to undervaluing the leases. “  [The Times identifies only some of the problems associated with privatizing City services.  With profits to be made,the cost of anything that is privatized is higher in the long term than if the same work was performed by City employees.  Typically, a private company gives a rosy picture in the beginning and may promise lower prices (for a while), but then raises the prices dramatically.  Chicago already found out about that!]

February 10, 2020 - LA Weekly - L. A. Live Chief Asks What City has Done for Him Lately - "The City kicked out an entire barrio to help develop AEG's Staples Center and LA Live (AEG even turned around and resold some of the real estate), gave . . . loans to help AEG build Staples and LA Live, and approved nearly $246 in tax breaks for the company."  [This is part of where the money has gone in the Los Angeles City budget.  Admittedly, there may be some benefits to the City, but they are usually overblown by both the developer and the City.]  [Instead of thanking our City,] "Leiweke sees things differently.  In his mind . . .he's done L. A. the favor"

February 7, 2010 – Ron Kaye LA – The Bills Are Coming Due – It’s Their Turn to Pay - "Richard Alarcon's arrogant and despicable treatment of an honorable public servant . . . ignorant and despicable point he is making.”  [As usual, Ron Kaye rants about the high cost of City employees and their benefits, something with which we disagree as being the problem.  But he also, as usual, makes some good points.]  “Together [Mayor and Council],  they have used City Hall to enrich their friends and allies . . . raise cash by selling the farm and borrowing against the city's future . . .  It is visible to anyone who is not walking around with eyes wide shut . . . They can promise the workers anything but they can't deliver."  [Speaking, of course, to the promises made to the COCU!]