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Los Angeles is on the verge of bankruptcy. A major stand off this week between mayor Antonio Villaraigosa and the LA City Council over the city\u2019s budget, has resulted in some city agencies being shut down two days a week. Union leaders are challenging the mayor\u2019s authority to effectively reduce city employee paychecks by two-fifths. Losses in tax revenues, combined with increasing payrolls, and additions to the LAPD, have forced the city into a structural deficit, making it rely on periodic infusions of cash. A promised payout of $73 million from the Department of Water and Power this month was expected to close the latest budget shortfall. However, when city councilors refused to approve a rate hike to in part to reduce LA\u2019s reliance on coal-powered energy, the DWP refused to hand over the funds, leaving the city in a bind. City Controller Wendy Gruel has warned that without the DWP\u2019s infusion of cash, the city has only enough money to cover expenses for a few more weeks. The total budget shortfall for the fiscal year could be as high as $290 million. <\/p>\n
GUEST: Jessica Levinson, Director of Political Reform at the Center for Governmental Studies, Adjunct professor at Loyola Law School, teaching campaign finance law<\/em><\/p>\n Read about the crisis on the LA Times: <\/p>\n Los Angeles mayor responds to pressure, says city service shutdown only a last resort:
\nhttp:\/\/www.latimes.com\/news\/nationworld\/
\nnation\/wire\/sns-ap-us-la-city-budget,0,4921439.story<\/a><\/p>\n