From Zuma Dogg's LA DAILY BLOG News Wire (Click here for these stories and more)
LA city coffers stung by housing slump, economy
By Kerry Cavanaugh, Staff Writer
03/05/2008
With the weak real estate market and slowing economy, the city of Los Angeles will bring in $90 million less revenue than expected in the fiscal year ending June 30, according to estimates released Wednesday by the city controller.
The latest estimate puts city revenues this year at $4.246 billion. And as sales tax and property tax revenues drop further, revenue for the next fiscal year - beginning July 1 - will likely fall $11 million to $4.235 billion.
Over the last month, city budget officials have warned that revenue would be lower than expected and city leaders face cutting programs immediately to balance the budget.
The report by Controller Laura Chick came with another warning.
"Now comes one of those moments of truth," said Chick. "We need to rein in our spending, continue to build and maintain a healthy reserve fund and ensure the people of Los Angeles that they can rely on the quality delivery of essential services."
Economists who advise the controller in setting the revenue estimates do not predict a recession. They expect the local economy will pick up in late 2008 or early 2009.
However, the housing market and foreclosure crisis could lead to distressed neighborhoods, empty buildings and urban blight. Chick recommended the city develop a strategy to deal with boarded-up houses now.
Status of truckers is a big hitch in port plan
L.A. and Long Beach mayors agree on all other key aspects of the clean-air strategy.
By David Zahniser and Louis Sahagun, Los Angeles Times Staff Writers
March 6, 2008
The mayors of Los Angeles and Long Beach have spent nearly a year marching in lock-step, crafting a groundbreaking $1.6-billion plan for removing nearly 17,000 exhaust-spewing diesel trucks from the nation's two busiest harbors.
With remarkable ease, Los Angeles Mayor Antonio Villaraigosa and Long Beach Mayor Bob Foster spurred their respective ports to pass initiatives that would have been unthinkable a few years ago: first a ban on older trucks moving through the ports; then a $35 fee on each cargo container to pay for newer, cleaner trucks.
But last month, Foster broke ranks with Villaraigosa by rejecting the plan's final piece, a proposal backed by the International Brotherhood of Teamsters to require independent truck drivers at the Long Beach harbor to be employees of trucking companies, a move that would make it easier for them to organize.
Villaraigosa and his allies argue that truck drivers, most of whom are now independent contractors, need to be well paid in order to take care of the new trucks that the ports plan to help them buy. On the other side, Foster and his supporters say the union-backed provision will attract lawsuits and be difficult to defend in court, delaying the clean-air plan by two to three years -- or killing it altogether.
HUD raises mortgage limits
By Marcy Gordon, The Associated Press
03/05/2008
The government on Wednesday raised the mortgage limits for loans guaranteed by the Federal Housing Administration in Los Angeles, Ventura and a dozen other high-cost California counties.
The Department of Housing and Urban Development released the new limits for California, which is now suffering the worst home-price declines in the nation. The limits, with the maximum at $729,750, are derived from median home prices in each county.
UTLA settles suit over payroll snafu
L.A. teachers who were underpaid will get interest on late payments and those who protested will not be disciplined.
By Howard Blume, Los Angeles Times Staff Writer
March 6, 2008
The teachers union has settled a lawsuit with Los Angeles school officials over a malfunctioning payroll system that overpaid or shortchanged teachers for much of last year.
The settlement will provide teachers who were underpaid 8% interest for up to six months on late payments. Teachers also will face no discipline for having boycotted staff meetings to protest payroll problems. As part of the settlement, the L.A. Unified School District will drop a separate unfair labor practice charge filed in response to the United Teachers Los Angeles-backed boycotts.
The school board approved the settlement after a discussion in closed session Tuesday. The union filed the lawsuit in April, seeking timely paychecks issued in the correct amounts, comprehensible pay statements and emergency pay centers, among other demands.
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