L.A. City Takes In $186 Million Less Than Expected This Fiscal Year
Lower tax revenues mean that the city has taken in $186 million less than what was expected for the fiscal year so far, according to a mid-year report submitted to the mayor and the City Council Thursday.
City administrative officer Miguel A. Santana's revelation comes a day after the Los Angeles Times reported that city leaders are pondering laying off 1,000 city workers to help deal with a projected $400 million budget deficit.
Santana blamed reduced sales, business and hotel taxes for the short revenues, and he also cited communications and gas users taxes. In the summer quarter alone sales taxes decreased 16 percent instead of the city's estimated 6 percent, he stated.
"Reductions in spending made now will mitigate the impact of corrective action necessary to deal with next year's projected deficit," he wrote.
We guess that means no more $120,000, nine-day trips to Europe, right Mr. Mayor?