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Los Angeles TimesUnder the threat of a credit rating downgrade, the Los Angeles City Council on Thursday instructed agency heads to eliminate 3,000 additional city jobs before July 1 "by any means necessary, including layoffs."
The reduction -- aimed in part at wresting further concessions from the city's labor unions -- would be on top of 1,000 job cuts already in the works.
The council vote comes a day after Moody's Investment Services, one of the nation's top financial credit rating agencies, issued a negative outlook for Los Angeles because of the city's struggles to close a $212-million deficit. It also comes a week after Mayor Antonio Villaraigosa had sought an additional 1,200 to 2,000 job cuts -- or wage reductions for city workers.
The council's 9-3 decision came after members met in closed session for several hours with City Administrative Officer Miguel Santana, who warned that tax revenue has continued to deteriorate. Unless the city finds more revenue or cuts costs, the budget shortfall is expected to increase to $485 million in 2010-11.
Under the measure approved by the council, police officers and firefighters would not be exempt from possible job cuts. Council President Eric Garcetti noted that for a number of council members, continuing to hire officers while laying off other city workers was "a big pill to swallow."
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http://www.latimes.com/news/local/la-me-la-budget19-2010feb19,0,1667101.story