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How bad is the economic condition of Los Angeles? In six weeks the budget deficit grew by $23 million! What will it be in six months?
"On December 1, the City Administrative Officer informed the Mayor and the City Council that the projected deficit for the fiscal year beginning on July 1, 2011 had increased to $343 million, an increase of $23 million (7.5%) from the previous deficit of $319 reported in First Financial Status Report dated October 15. Underlying this increase was the requirement that the City increase its contribution to the Fire & Police Pensions to $500 million, an 11% increase from the previously anticipated $450 million.
This was offset in part by a $27 million decrease in the anticipated contribution to the Los Angeles City Employees’ Retirement System. However, this decrease was a function of yet another below the radar screen accounting gimmick where the politically appointed LACERS Board of Administration increased the “smoothing” period from five years to seven years."
Again, the primary problem is the pension system and its costs--only smoke and mirrors allows the situation not to be worse. Corruption does work, especially in Los Angeles.
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"On December 1, the City Administrative Officer informed the Mayor and the City Council that the projected deficit for the fiscal year beginning on July 1, 2011 had increased to $343 million, an increase of $23 million (7.5%) from the previous deficit of $319 reported in First Financial Status Report dated October 15. Underlying this increase was the requirement that the City increase its contribution to the Fire & Police Pensions to $500 million, an 11% increase from the previously anticipated $450 million.
This was offset in part by a $27 million decrease in the anticipated contribution to the Los Angeles City Employees’ Retirement System. However, this decrease was a function of yet another below the radar screen accounting gimmick where the politically appointed LACERS Board of Administration increased the “smoothing” period from five years to seven years."
Again, the primary problem is the pension system and its costs--only smoke and mirrors allows the situation not to be worse. Corruption does work, especially in Los Angeles.
More...