Despite record revenues that are expected to exceed $5 billion, the City Council is considering a $4.5 billion tax increase over the next 30 years to fund the repair of our lunar cratered streets because of its inability to control ever escalating salaries, benefits, and pension contributions.
But the failure of the City Council to balance the budget despite record revenues is compounded by its unwillingness to endorse Mayor Garcetti’s “Back to Basics” priorities by “making government more efficient and effective.”
For example, if the City were to sell the Convention Center, it would eliminate over $400 million in debt and increase the City’s cash flow by $60 to $80 million a year. More than likely, the sale price of this 870,000 square foot white elephant would be considerably more than the debt, generating additional cash to reduce the City’s outstanding debt, fund the repair of a portion of our streets, or finance the revitalization of the Los Angeles River.
As part of any sale, the buyer would be required to develop a world class facility that would attract top of the line conventions to the City, generating huge increases in hotel and sales tax revenues for the City’s treasury.
Furthermore, the development of the 54 acre Convention Center site by a well healed buyer would create a boat load of additional revenue for the City through development fees and higher property taxes, and, at the same time, create thousands of construction and full time jobs that would revitalize DTLA and stimulate our lack luster economy.
The City has also given lip service to “performance based budgeting.” However, the administration has not made any effort to “benchmark” its operations or any of it compensation and benefit policies with those of other governments or alternative providers. This was a key recommendation to our Department of Water and Power by PA Consulting in its August 2012 report. The City should also consider “outsourcing” noncore services to more efficient vendors, another common sense recommendation of PA Consulting.
Via: California Political Review
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