Budget Red Flags Tell Us Something’s Fishy

Budget Red Flags Tell Us Something’s Fishy

LA CONFIDENTIAL
By Jack Humphreville

Red flags are flying as the City’s short term borrowings have increased from $150 million to $650 million over a four-year period according to the Controller’s March 1 Report. And needless to say, this amount is going to increase next year as the City attempts to close a budget deficit of close to $500 million.

The question: Is the City’s budget really balanced as required by the City Charter? And are the Tax and Revenue and Anticipation Notes (the “Notes”) a worthwhile investment? Read more…