[ilbegone]

From City of LA's proposed 2010-2011 budget pg. 353:

As Controller under the Charter, I must issue a March 1 revenue estimate for budget planning purposes. This letter goes beyond that requirement. My role as Controller is not only to annually report on revenue but also to make payments to City employees, vendors, bond holders and others.

As the ongoing state fiscal crisis has vividly demonstrated, when the state does not have sufficient revenues to meet its expenditures, the State Controller withholds payments. The same is true of the City, if we do not have sufficient revenue to meet expenditures, this Office will have to withhold payments until we do. While such a condition is unlikely, it is not impossible this or next year if expenditures and revenues are not brought in line.

I have released several letters expressing concern about the current fiscal condition of the City and urging you and the Council to act quickly to reduce the budget deficit. I know that you, along with all members of the City Council, share my desire for the City to return to strong fiscal footing and know that swift and decisive actions are necessary to reduce the structural deficit.

As City Controller, I am committed to providing you and the City Council with independent financial reports so that you can make the most informed decisions during these challenging economic times. I know that the cuts you will be making in the coming weeks and months will be difficult and drastic. City government will look dramatically different in five years, both in its size and scope of the services provided.

http://cao.lacity.org/bud2010-11/10-...sed_Budget.pdf