L.A.’s Fiscal Outlook is Grim
Los Angeles city coffers have been battered by coronavirus business closures. And with stimulus talks going nowhere, the future looks bleak. On Friday, officials said the city could face a budget shortfall of $400 million to $600 million by the end of the fiscal year.
“A $600-million revenue shortfall equates to 9% of the 2020-21 budget, well above any available reserves and any currently identifiable solutions,” warned City Administrative Officer Rich Llewellyn. Even a $400 million hole would eat up significant reserves.
Mayor Eric Garcetti has warned department heads to prepare for layoffs. Some are still holding out hope for a deal in Washington.
Read more at the Los Angeles Times.