Report: Los Angeles Faces $350M Deficit In 2012
LOS ANGELES (AP) — A new report says Los Angeles is facing a $350 million deficit and a sluggish economy in the next fiscal year but the unemployment rate will drop slightly.
City Controller Wendy Greuel says the city will receive about $6.3 billion in revenues in the 2011-2012 year that starts in July. That's down $130 million from the current year and will leave LA with the smallest general fund since 2006.
Greuel's economic forecast Wednesday warns that the city can't count on increasing tax revenues to help balance the budget. There will be more money from sales and other taxes but a $24 million decrease in property tax revenues will offset that.
On the plus side, the forecast says the local jobless rate will drop from 12.4 percent to 11.7 percent.
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