One of the nation\u2019s top financial credit services Wednesday issued a negative outlook for Los Angeles, which is struggling with a $212-million budget gap. The move could lead to a lower credit rating for the city and ultimately increase Los Angeles’ cost of borrowing money.
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<\/br>Moody\u2019s Investors Service took the action because of delays by the city in addressing the budget shortfall, which is expected to grow to $485 million in the 2010-11 fiscal year. The service also expressed doubts that proposed layoffs and service cutbacks under consideration by the City Council would deliver the promised savings.
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<\/br>\u201cThe erosion in the city\u2019s historically better-than-average willingness and ability to quickly re-balance its budget mid-year also contributes to this revised outlook," the ratings firm said in a statement.
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In November, L.A.\u2019s credit was downgraded by Fitch Ratings, which determined that Mayor Antonio Villaraigosa and the council had failed to take adequate action to address the city\u2019s fiscal crisis. Villaraigosa has since ordered department heads to eliminate 1,000 jobs, but employee unions are lobbying to avoid layoffs. <\/p>\n
The nation\u2019s other major credit rating agency, Standard & Poor’s, has not made any public announcement regarding Los Angeles.<\/p>\n
Because the city collects tax revenue intermittently throughout the year, it depends on short-term loans to make payroll and pay bills.<\/p>\n
— Phil Willon at Los Angeles City Hall<\/p>\n","protected":false},"excerpt":{"rendered":"
One of the nation\u2019s top financial credit services Wednesday issued a negative outlook for Los Angeles, which is struggling with a $212-million budget gap. The move could lead to a lower credit rating for the city and ultimately increase Los Angeles’ cost of borrowing money.Moody\u2019s Investors Service took the action because of delays by the […]<\/p>\n","protected":false},"author":4678,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-332984","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/332984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4678"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=332984"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/332984\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=332984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=332984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=332984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}