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Riordan: L.A. Will Be Broke Within 3 Years

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  • Description

    Former Los Angeles Mayor Richard Riordan on the economic state of Hollywood.

  • Duration 3:31
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Angeles -- Richard Riordan has a warning for the city of Los Angeles.

Reform public woke up pensions now or face a fiscal disaster is -- disaster.

His plan calls for three changes number one allow votes is not the City Council to approve changes to public employee benefits to.

Cap current -- -- salaries to limit pension payments three.

Create a new pension category for new employees.

Matt Riordan joins us now from Los Angeles now you -- I'd like to take this one at a time.

You want voters to approve any changes in pensions all salaries votes is not -- City Council but direct vote is point number one correct.

Absolutely correct the City Council is totally controlled by the unions.

And instead -- The cutting back on pensions they increased potential all the time.

I would like they have something the mayor is become reforming them fell and he is very much behind what I've tried to do.

You would require some kind of change in the city shock so all of a constitution all of the city.

To make they make it vote for approval as opposed to City Council approval right.

We have to do that first because the council obviously won't do it.

And that will also mean that from here on out we won't have to go the public because you would not be able to increase -- change without voter approval.

OK I sit and looking through your three points I don't see any change.

To the pensions which have already been agreed to and which are already being paid.

And I think that is the fatal flooring you plan because unless you deal with the pensions which -- now shelling money count for law.

Can't get a grip on things.

Well first -- -- what we're gonna put him from the voters has and then finally decided on.

Secondly there is a problem.

The courts have held that.

The contract with the present employees.

Cannot be upset by voters or otherwise.

And so this is something we have to look at very carefully to make changes before you make changes.

So you you're really a hands are tied on that issue mean that the court says no you you he can't touch pensions that -- -- agreed to installed to -- can't touch market.

You use the expression I think he was on the disaster -- a disaster you use that expression.

-- -- -- -- I think yes they well bankruptcies a bad word but.

If your -- solve that you don't have any money.

To paid police to do paper law libraries.

Parks.

-- -- -- something may be the only thing you do is go into bankruptcy.

In order to have the court cut back on all these terrible pensions health care and other thing.

If you is real fast you're on -- if you don't make any changes after all when India hit that bankruptcy filing.

How many years.

Anywhere from one to three years no more than three years because.

It is going we're going up like hit half a billion dollars a year in the cause.

And I don't think -- Citi can stand it much longer plus throughout all this we're losing jobs and taxes ouch.

Now -- Richard -- written formally a matter of Los Angeles always a pleasure you spell it out far as you know which are talking about so and we appreciate that indeed thank you so I'll thank you very much chuckling.

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