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MAYOR ANTONIO R. VILLARAIGOSA
City of Los Angeles

FOR IMMEDIATE RELEASE
September 16, 2009

CONTACT:
Matt Szabo
(213) 978-0741

MAYORAL STATEMENT ON BUDGET VOTE

LOS ANGELES - Mayor Antonio Villaraigosa delivered the following remarks today at a news conference in response to City Council’s budget vote: "One million dollars a day. The City of LA is losing one millions dollar a day due to inaction in response to this financial crisis.

One million dollars a day means that every day we delay action, we’ll have to lay off an additional ten employees if we hope to balance the budget.

When I announced that I opposed and would veto the Early Retirement proposal, I did so because I recognize the sobering reality of the changed and rapidly deteriorating circumstances that we now face.

As the CAO reported, revenues this year are already $75 million less than projected, and the Early Retirement proposal which was projected to save $111 million this year now will only save $12 million.

Because of these and other reasons, the CAO and CLA concluded that approval of these agreements ‘would devastate City operations and would not be sustainable.’

Without taking immediate action to give the City the flexibility it needs to respond to this rapidly deteriorating financial situation… we could be headed for financial ruin.

I come from the labor movement. No one is a stronger supporter of organized labor than I am. It pained me greatly to oppose the tentative agreement with the Coalition of City Unions.

But I did so because circumstances have changed.

We have no choice.

As Mayor of this City, I have the responsibility to provide critical services and uphold the public safety for the residents of Los Angeles. And I have that responsibility whether we’re in times of economic prosperity or in deep recession.

I cannot stand by and allow the City’s hands to be tied so severely that we would have no choice but to lay off police officers and drastically reduce fire service as we weather this financial storm.

The City Administrative Officer and the City Controller could not have been more clear:

We must act now if we have any hope of preserving critical public safety services for the residents of Los Angeles.

I will continue to work with the City Council and our partners in labor… and I urge them to act to take the swift, concrete, decisive action that this crisis demands.

But let me be clear: I will veto any proposal which ties the City’s hands and could lead to draconian cuts to our police and fire services.”

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