Saturday, March 27, 2010

"Los Angeles Is About to Become Pink Slip City"

The city of Los Angeles continues on the verge of bankruptcy and local city council members are acting as though the IMF will send their people over to distribute cash once they finish ditributing cash in Greece.

The Los Angeles Downtown news provides a picture on how attempts at balancing the budget are going:
 Last week, [Los Angeles Mayor] Villaraigosa sought to scare the Council into passing DWP rate hikes, warning that the failure to do so could set off a process that could force L.A. to tumble into bankruptcy. The Council responded with a 15-0 vote against, with even the mayor’s water carriers dropping their pails.
Bottom line LADN has it right:
The only thing surprising about the city’s budget disaster is that anyone is actually surprised about it. People may bemoan the $212 million shortfall for the current year, but the fact is, this is nothing new...Los Angeles is about to become Pink Slip City.
In other words, the Great Recession, in one way or another, is about to force shrinkage of another government that really only thinks expansion.

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