The Los Angeles City Council\u00a0voted Thursday to give up $12 million that would normally pay for pet projects in their districts and instead use it to replenish the city\u2019s emergency reserve. The city’s credit rating has been downgraded in recent days in part because officials plan to tap that reserve to counter the city’s $212-million budget shortfall.<\/p>\n
With the city facing up to 4,000 job cuts, Mayor Antonio Villaraigosa asked council members last month to loan the reserve as much as $40 million from their discretionary accounts, which they have used for projects such as crosswalks, pocket parks, street repair, graffiti removal and, on occasion, their staff salary accounts. <\/p>\n
Council members agreed that each of their 15 offices could determine which accounts to draw money from to reach their $800,000 share of the total. City officials expect most of the money to come from a fund replenished with tax revenue from redevelopment areas. The money\u00a0is\u00a0currently earmarked for economic development projects in the council districts that encompass those redevelopment areas. <\/p>\n
Councilman Greig Smith said Thursday\u2019s action was a first step and that budget analysts would continue to scour the accounts to identify other money that may be available to help cover this year\u2019s gap. For some of the accounts, such as one for mitigation measures around the Sunshine Canyon landfill, there are legal restrictions limiting how money can be used. <\/p>\n
— Maeve Reston at Los Angeles City Hall <\/p>\n