NEWS
May 23, 2012 | By Marc Lifsher, Los Angeles Times
SACRAMENTO — Some of California's share of the money from a national legal settlement with big mortgage lenders can be used to help fill a hole in the governor's proposed budget, the Legislature's nonpartisan policy advisor recommended. The legislative analyst's office reported Tuesday that $411 million should be used for a variety of purposes. Atty. Gen. Kamala D. Harris, who reached the settlement together with other state attorneys general, wanted to use most of the $411 million on financial counseling and education.
BUSINESS
May 23, 2012 | By Lisa Mascaro, Los Angeles Times
WASHINGTON - The Congressional Budget Office warned that the country could be thrown into a recession if Congress tries to reduce the nation's deficit quickly with a combination of budget cuts and higher taxes scheduled to take place at the end of the year. The nonpartisan budget office laid out the stark choices Tuesday over what has been called the coming fiscal cliff as congressional leaders square off in an expected partisan showdown from now through December. The office warned that the growth of the nation's gross domestic product - the value of goods and services produced - would slow to just 0.5% next year if Congress did nothing.
BUSINESS
May 21, 2012 | By Hugo Martín, Los Angeles Times
When it comes time to trade in your frequent-flier reward points for seats on an airplane, low-cost airlines do the best job of getting you in the air. That was the conclusion of a study released last week by IdeaWorks, a Wisconsin consultant to the airline industry. In March, IdeaWorks submitted nearly 7,000 booking requests through the frequent-flier websites of 23 airlines. Seats were requested for the airline's most popular routes in June through October. The study had a 93.5% success rate of finding available seats on low-cost airlines around the world, including U.S. carriers such as Southwest Airlines, AirTran Airways and JetBlue Airways.
CALIFORNIA | LOCAL
May 21, 2012 | Kate Linthicum, Los Angeles Times
The Los Angeles City Council passed a $7.2-billion budget Monday, voting to cut 400 unfilled city staff positions but putting off difficult decisions on layoffs, park funding and Fire Department resources. On a 15-0 vote, council members agreed to wait until January to determine whether layoffs are necessary, and which positions could be eliminated, saying that more study is needed. They took that step despite a warning from the city's top budget official that some of the revenue being used to balance spending isn't a sure thing.
CALIFORNIA | LOCAL
May 20, 2012 | By Tony Perry, Los Angeles Times
SALTON SEA STATE RECREATION AREA - During the heyday of the Salton Sea, when the Hollywood crowd and others came to play in large numbers, this strip of beaches, campsites and fishing spots along the sea's northern shore was one of California's most popular parks. But that was years ago. The popularity of the recreation area has plummeted in recent decades, and now the area is on a list of parks to be closed because of the state's financial woes. Unlike other parks slated for closure, this one may never come back, park officials said.
BUSINESS
May 19, 2012 | By Marc Lifsher and Alejandro Lazo, Los Angeles Times
SACRAMENTO - Efforts to ease California's foreclosure woes, among the worst in the nation, are running into roadblocks at the state Capitol. A rare legislative conference committee called to rescue a pair of stalled foreclosure-prevention bills is bogged down in marathon sessions. Meanwhile, Gov. Jerry Brown is pushing to use some of California's share of the $25-billion national mortgage settlement to plug holes in the state's budget, dismaying housing activists. Since the start of the real estate bust, foreclosures have been a persistent drag on the state's homeowners and economy.