Posted 2 years ago on April 16, 2012, 6:55 a.m. EST by infonomics
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Los Angeles' top budget official says the city could go bankrupt if it doesn't overhaul its finances with new taxes, possible layoffs and the privatization of some city services. Chief Administrative Officer Miguel Santana told the Los Angeles Times Friday that a $222 million budget gap has the city in "crisis mode." That figure is expected to increase to $427 million by 2014-15. In a sweeping report, Santana blamed the shortfall on stagnant revenues and rising employee costs such as payroll and pensions.
The ripple effect continues.