Los Angeles city coffers have been battered by coronavirus business closures. And with stimulus talks going nowhere, the future looks bleak. On Friday, officials said the city could face a budget shortfall of $400 million to $600 million by the end of the fiscal year.
“A $600-million revenue shortfall equates to 9% of the 2020-21 budget, well above any available reserves and any currently identifiable solutions,” warned City Administrative Officer Rich Llewellyn. Even a $400 million hole would eat up significant reserves.
Mayor Eric Garcetti has warned department heads to prepare for layoffs. Some are still holding out hope for a deal in Washington.
Read more at the Los Angeles Times.