Outlining his goals for the new year, Los Angeles Mayor James K. Hahn acknowledged Wednesday that the state's budget crisis could hamper his efforts in several key areas, including public safety and business tax reform.
The mayor told about 150 members of the Central Cities Assn. that he will continue to push for a revitalized downtown, more affordable housing and a stronger police force. He also said he will look for new ways to make city departments more responsive.
But the state's budget problems could have a profound effect on his plans this year, the mayor said. Under Gov. Gray Davis' current state budget plan, the city stands to lose $70 million this year and $175 million next year.
"It makes it impossible" to undertake his varied plans and proposals, Hahn said after his lengthy lunchtime speech to the downtown business group.
Politically, the state's budget problems could be harmful to the mayor. Hahn made numerous promises to voters in his successful campaign to defeat two secession measures on the November ballot.
"Nothing could be worse" than the prospect of having to renege on those promises, Hahn said after his talk.
At a speech last month to the Valley Industry & Commerce Assn., for example, the mayor said reforming the city's byzantine business tax code was a priority. Wednesday, he said: "I think it is in jeopardy."
In recent weeks, Davis has moved to sharply cut state spending and raise taxes to deal with what he announced was a budget gap of nearly $35 billion over the next 17 months.
Members of the City Council's budget committee were warned Wednesday that the city is facing layoffs and service cuts in the wake of the state budget crisis. Even fire and police services -- departments usually protected from trims -- will feel the , city accountants said.
As a result, City Administrative Officer Bill Fujioka said he is asking all department managers to immediately come up with ways to reduce their budgets by 7%.
"We are asking for a hard hiring freeze, and that includes police and fire," Fujioka said. "There will be some very significant service cuts, and also some layoffs."
Also concerned is Police Chief William J. Bratton, who said earlier Wednesday that he is worried about the impact of deficits and shortfalls both in the state and federal budgets. He said that 900 of his officers are paid using federal funds and that he is seeking to ensure that money remains intact. He said his budget team is working on the assumption that it may have to do more with less.
