Mayor Villaraigosa Says There's Been A Spike In City Revenue

• I have sent this to in a separate (more readable) email to many. If any want a copy of that please sent your request to me. Daniel Wiseman dwisemanmd@yahoo.com =========================================== SEVEN SUGGESTIONS for the MAYOR & CITY COUNCIL on April 9, 2010 to be PROPOSED to the NC BUDGET ADVOCATES on April 10, 2010 by Daniel Wiseman, Secretary of the NC Budget Advocates Honorable & Responsible Mayor Villaraigosa and Honorable & Responsible City Council Members: There is no question that the Budget of the City of Los Angeles is, now, in a �death spiral� where any decrease in income or increase in expenses will result in loss of all of our available cash. It is no longer possible to call that anything but insolvency and speak of the necessity of bankruptcy. Two days ago, the Mayor asked the Citizens of Los Angeles to send him their recommendations by completing the �Mayor�s Budget Challenge� (annual survey) which has already been done by over 7,500 people. In response to the Mayor�s request, I offer six actions to reduce the FY2009-2010 Budget Deficit to a minimum and to preserve as much of our vital Reserve Fund as possible. SUGGESTION #1: The Mayor request and the City Council endorse his request for an immediate voluntary �withhold� on the following amounts from the salaries of our highest paid employees. This actuates the primary FY2009-2010 slogan: �Shared Responsibility and Sacrifice� and could defer the expenditure of approximately $ 40,000,000 in FY2009-2010. The funds saved by this action would be returned repaid to the employees in the first August paycheck of FY2010-2011 using funds �added� to the principle of the FY2010-2011 TRAN. SALARY RANGE NUMBER of EMPLOYEES Per Cent WITHHELD NUMBER of MONTHS MINIMUM SAVED $200,000 & OVER 36 30.00% 2.5 $450,000 $100,000 to $200,000 6,036 20.00% 2.5 $25,150,000 $90,000 to $100,000 4,860 10.00% 2.5 $9,112,500 $80,000 to $90,000 5,506 5.00% 2.5 $4,588,333 TOTAL POTENTIAL SAVINGS in FY2009-2010 --> $40,000,000 This suggestion includes a decrease of income to all of our City�s highest paid employees, civilian and sworn, as was clearly recommended by the Comments of 2,167 respondents to the Mayor�s Budget Challenge. It assumes that these employees are more responsible for the City�s Budget Crisis and more able to sustain a temporary decrease in their incomes than employees living on lesser incomes. SUGGESTION #2: The representatives of all City Employee Groups including representatives for the �unrepresented� appointees and employees should return to the �bargaining table� in order to renegotiate all existing employee contracts and agreements with the goal of preserving a maximum of City Employees and, therefore, a maximum of City Services. These negotiations must include both �sworn� and �civilian� employees. SUGGESTION #3: All possible efforts will be made to collect the remaining $ 73,000,000 DWP Power Transfer. The obligation was incurred in FY2009-2010 and the funds to pay that obligation were collected by DWP before June 30, 2009. SUGGESTION #4: The DWP should be asked to advance the payment of its FY2010-2011 obligation (incurred in FY2009-2010) to July 2010 in order to decrease the required TRAN. In consideration of that �early� payment, the City should consider releasing the DWP from any Power Transfer obligation in future years. SUGGESTION #5: All possible efforts (including efforts not mentioned, here) should be made to preserve and actually increase our Reserve Funds. Depleting them to pay our fixed expenses (salaries and operating costs) is unacceptably dangerous. It leaves the City unable to respond to emergencies (fire, flood, earthquake, riots, etc.) SUGGESTION #6: Next year�s TRAN should not include the (approximately) $ 750,000,000 necessary to make an �early� payment of the City�s contributions to the LACERS and Fire & Police Pension Plans. SUGGESTION #7: Other actions should be actively considered (for instance, changes in the schedule of Property Tax and Business Tax, the shift of the Power Transfer payment � mentioned above, a shift to a January 1 to December 31 fiscal year) in order to assure adequate funds to facilitate paying our expenses at the beginning of each fiscal year and, thereby, to decrease or eliminate the need for TRAN. Respectfully submitted, Daniel Wiseman 1-818-635-4033

• Actually, I like what Jay Leno said last night. He said he had a better idea than closing City Departments 2 days a week. He suggested closing the mayor's office 5 days a week! I'll vote for that!

• Please tell me that picture is a really old one! No way that **1@&* would take credit for this! He should be glad no one has thought to bring rotten tomatoes to his speeches -- yet.

• 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

• Do I hear the drums of recall beating?

TotalComments: 5