Solvency Most Important Issue Facing Los Angeles

Los Angeles is already in the midst of an already escalating political battle to succeed Antonio Villaraigosa, candidates have not yet addressed the billion-dollar structural deficit facing the city’s future. That’s why one group wants to see the candidates get behind a new charter amendment.

The charter amendment would force the city to live within its means by looking at income and expenses on a five-year basis instead of year to year. That five-year view would include other plans as well, such as the Infrastructure Plan and the Pension Funding Plan.  The city would then approve two-year budgets.

However, the charter amendment does more than simply change the view of budgeting, it sets specific goals for funding pension plans and maintaining the city’s infrastructure, which has been neglected during rounds of budget cuts. Currently, the city’s pension funds are 72.6% funded. The amendment would call for them to be funded to at least the 100% level by 2024.

From CityWatch LA:

The City’s very solvency is the most important issue facing the City of Los Angeles.  

And yet none of the five candidates for Mayor have presented any specific details on how they would balance the budget, finance the maintenance and repair of our lunar cratered streets and the rest of our deteriorating infrastructure, and fund the City’s two pension plans that are underwater to the tune of $10 billion, and that is based on overly optimistic rates of return.

Read the full article here.

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