KPCC News In Brief

LA opposes state plan to borrow city property tax revenues

Lawmakers in Sacramento today continued to wade through more budget cut proposals from the governor. KPCC’s Julie Small reports they heard testimony on his plan to borrow $2 billion from counties and cities – including Los Angeles.

Jim DeBoo: We’ve just closed a $530 million deficit.

Julie Small: That’s Jim DeBoo – the City of L.A.’s man in Sacramento. He told members of the budget conference committee Mayor Villaraigosa could sign a balanced budget by the end of the week. But DeBoo also says if the state decides to borrow 8 percent of the city’s property tax – as Governor Schwarzenegger proposes – that will push Los Angeles back into the red.

DeBoo: It could be anywhere between $85 million and around $100 million in additional deficit. If it does happen, the fear is we’d have to go look at public safety cuts. And that’s something that the mayor and the city council at least in L.A. would really, really like to avoid.

Small: Representatives from cities across the state told lawmakers they face similar – and equally bad – choices.

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May 2009

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