Los Angeles bonds are beating the $3.7 trillion municipal market even as leading mayoral candidates oppose a measure to raise the sales tax while also vowing to eliminate a $450 million-a-year business levy.
The job of making Los Angeles run more like a business to cope with budget deficits that may exceed $500 million in four years belongs to the son of illegal Mexican immigrants who grew up poor in the city’s suburbs.
Los Angeles taxpayers spent almost $15 million last year to subsidize the city zoo, enough to pay 300 rookie cops. Expenses included $2,000 to clear up the bladder infection of a guinea pig named Sophia.
Los Angeles faces tens of millions of dollars in additional borrowing costs after the City Council told anti-Wall Street protesters it intends to cut ties with banks involved in financial wrongdoing, Administrative Officer Miguel Santana said.
Los Angeles should take steps such as forcing workers to take more unpaid days off to close a budget gap that may grow more than sixfold if it fails to lease nine parking garages, two city officials said in a memo.
The Los Angeles City Council voted to raise the retirement age for new municipal employees to 65 from 55 and to reduce their pension benefits, a move the city’s budget analyst said would save as much as $4.3 billion over 30 years.