Los Angeles is in the red, and in an effort to avoid a financial catastrophe, the city may have to lay off thousands of city workers, according to Councilman Bernard Parks.
The city faces a $408 million deficit next year and a $98 million deficit this year.
"Everything we've done over the past few years have been one time fixes. They're not going to help this year," said Councilman Parks.
Los Angeles had its credit rating lowered by Fitch Ratings last week, which said the city’s deficit next year will exceed nine percent of revenue.
"Staffing cuts are inevitable," said L.A. Mayor Antonio Villaraigosa. "What we need is need to protect the core services such as police and fire. But the city's business model has to change."
The Mayor is publicly wondering if the city should run its own convention center and the zoo, as most cities don't.
"Eighty-five percent of the city government of the city fund is spent on salaries and benefits,” Parks said. “To seriously save money there is no other way then to disconnect some workers from the city payroll."
The number of jobs declined for the first time since 2003 in Los Angeles. The unemployment rate rose to 14 percent in September from 9 percent the year before.
Parks says short-term furloughs just don't save enough money to help in the long run. The City Councilman has also mentioned boosting fees and aggressively going after tax evaders.
