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Los Angeles City Administrator Miguel Santana discusses the city’s decision to pass a new budget without layoffs.
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You can't.
Los Angeles is going broke but the City Council just decided not to lay off any -- -- in his latest budget.
Are they listening to Miguel some time of the city's budget office chief budget officer his what he said last month.
In Los Angeles we still have a number of options none of them are easy.
They're difficult things to do and what our report does or fifty pages of of options that lay out to the mayor and the City Council so that bankruptcy is not something that we're headed towards.
I'm now here is Miguel sometimes joining us once again from Los Angeles.
You use the word bankruptcy then.
I want to know if you prepared to use it again now.
Because you pass the budget in Los Angeles without any additional layoffs 400 people will not be replaced through attrition -- that but no additional layoffs sorrow.
Will you still use the word bankruptcy when you look at Los angeles' future.
Well -- -- is really far from bankruptcy.
What the council was able to do is due to additional.
Funds that came in through property taxes were able to provide a six month lifeline.
To that 200 positions overstated for layoffs that you kick the can bring I'm and I don't mean to interrupt but are ready got to zero in on this I don't wanna get technical.
-- viewers are looking at Los Angeles and saying if you maybe you just kick the can down the road on this bankruptcy idea digit.
No we're not we're again we're far from bankruptcy I think what we're trying to do is trying to find.
Solutions it you know it just three years ago we have -- that our deficit for fiscal year thirteen fourteen was going to be.
A billion dollars we've been able to cut that by 80%.
So none of these solutions are easy they're not -- all happen over night.
But we've been making steady progress to solvency.
As you know Miguel one of the stores -- we're following all across the nation is how states treat that pension liabilities.
I know that Los Angeles has a big pension problem going down the road.
Do -- -- recommendations.
Address that.
Will youth do you think you will be able to cops the pensions that already being paid to retired city welcomes.
We've made some progress in that regard just a year ago our employees.
Paying nothing for retiree health care after working for twenty years you can get -- for free for the rest of your life.
Employees went campaign zero to paying 4% of their salary and less in the few weeks and so that's it has resulted in major savings for the city.
The other pieces that we adopted -- new pension reform for our sworn employees and -- the process of doing the same for civilians.
Pension reform -- it's a difficult issue went part of the challenge is not just in Los Angeles but throughout the country.
Is that the pensions that people were promise is the vested right -- protected by state and federal law.
-- -- Jose you can't do you I'm sorry to -- and -- but you could be in the position.
A being forced to -- retired workers and lay off and fire young -- that's a distinct possibility.
That is a distinct possibility and it's not unique to Los Angeles has stayed another major cities are going through the same challenges so you could still use that I hate to go back to -- -- -- -- you're a long way from us but you could use that would bankruptcy in connection in the same sentence with Los Angeles down the road correct -- As an -- as -- issue to avoid we're doing everything we can't so we're not at that place.
And the reality is is that we've made a lot of progress we're gonna continue to work hard we do all of this in public so.
You know that a lot of this work gets done in private in board rooms throughout America.
And government you do it in a public way and so.
It's not -- usual that these kinds of issues come up in that process that is true -- we appreciate you coming public with us so we do appreciate that -- -- -- chief budget -- -- thanks for joining -- -- --
