Please note that the LA Times, the LA Daily News or other newspaper or TV station has reported on the city needing to borrow $80 million to pay its liability bills. The city is running a deficit, but the liabilities bills are court ordered and must be paid. This is a city that has quicken its DOOM LOOP pace.
“The City of Los Angeles is not only “broke” and has spent half its reserves this year, as reported by City Controller Kenneth Mejia in September, but now is seeking to borrow at least $80 million, and thus at least $20 million in additional interest to cover liability payouts from lawsuits.
“The City has spent $141 MILLION on Liability Payouts in the FIRST FOUR MONTHS of the new fiscal year,” said Mejia on X. “The City is looking to borrow $80M + pay additional interest up to $20M to pay liability payouts.”
This is a city in deficit—who would loan them the money. Note the interest costs are about 25%–that is not a typo!!
City of Los Angeles ‘broke,’ taking $80 million loan to pay liability lawsuits
By Kenneth Schrupp | The Center Square, 11/4/24 https://www.thecentersquare.com/california/article_52fa0cfe-9afd-11ef-9abb-1bfee34d27c1.html?a
(The Center Square) – The City of Los Angeles is not only “broke” and has spent half its reserves this year, as reported by City Controller Kenneth Mejia in September, but now is seeking to borrow at least $80 million, and thus at least $20 million in additional interest to cover liability payouts from lawsuits.
“The City has spent $141 MILLION on Liability Payouts in the FIRST FOUR MONTHS of the new fiscal year,” said Mejia on X. “The City is looking to borrow $80M + pay additional interest up to $20M to pay liability payouts.”
“As we’ve mentioned before, if there is no plan to hold departments accountable for their liabilities or fund departments who have been chronically underinvested in thus leading to liabilities (e.g. infrastructure), the City will continue going broke,” continued Mejia.
Minutes after Mejia’s post, Los Angeles Mayor Karen Bass highlighted her efforts to secure more taxpayer support for the film and television industry.
“After a historic announcement to propose an expansion of CA’s Film and TV Tax Credits, I met with my Entertainment Council to talk about how doubling incentives would help our industry,” said Bass on X. “We have Hollywood’s back.”
One $38 million settlement paid to the federal government was for not making enough of its federally funded “affordable” apartments accessible for people with mobility, visual, and auditory impairments. Other major settlements include policing-related and infrastructure related liabilities.
Any entity that makes that loan is a fool. LA is junk bond status. Time to sell some of its assets and face up to bankruptcy status and fiscal responsibility! Every department is poorly run and filled with political appointees that never face responsibility.