Rick, Help Us Save Los Angeles 

LA WATCHDOG - In an opinion piece in the first edition of the California Post, California Leadership is Broken – the Professional Political Class Is Destroying Our Communities, Rick Caruso stated that he believes “that the system is so institutionally broken and corrupt, that effective leadership and independent action from the outside can create both a greater and more lasting impact.” 

We have a city ruled by professional politicians overseeing a bloated and inefficient bureaucracy that caters to special interests, political operatives, and public sector union bosses.  This has resulted in lunar cratered streets and cracked sidewalks, deteriorating parks, massive homelessness, crime, an undermanned and demoralized police force, annual budget crises, structural deficits, a declared state of financial emergency, and a complete lack of trust and confidence in Mayor Bass and the Harris-Dawson led City Council. 

The City created the Charter Reform Commission. But it has been called a “joke” by the Mayor and members of the City Council. After reviewing reports from the Commission, budget reform, the most pressing issue facing the City, is not on the agenda.  And even if meaningful budget and financial reforms were recommended by the Commission, they would be rejected by the fiscally irresponsible and anti-reform City Council and Mayor Bass who are jealous of their prerogatives and powers. 

In California, many believe the only way to achieve reform is through the ballot box. This is a very expensive undertaking, ranging from collecting signatures to place a measure on the ballot to a well-funded campaign to support the measure.  

This is an opportunity for Rick Caruso to make a real difference, especially if there is real reform of the City’s finances and budget process.   

In September, the Neighborhood Council Budget Advocates presented its seven recommendations to the Commission. They, other than the two-year budget cycle, have not seen the light of day.  

The most important recommendations called for open and transparent labor negotiations that require significant outreach to Angelenos before, during, and after the negotiations; a prohibition on the City from entering into any labor agreement that would create a current or future deficit; and the establishment of an independent Office of Transparency and Accountability to oversee the City’s budget and finances in real time. 

These ballot measures would eliminate the annual budget crisis that results from budget busting labor agreements with the City’s public sector unions as well as the Structural Deficit.  These reforms, however, would be fought by the bosses of the public sector unions that have had free access to the City’s treasury.  This is forcing the City to place three fund raising measure on the June primary ballot and four on the November ballot. If approved by the voters, these measures would raise over $600 million according to the City.   

Rick, Angelenos need your resources and effective leadership to help us reform the City. We are ready to follow you into the battle to save our demoralized City from the career politicians, special interests, union bosses, and all those feasting at the public trough.  

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The Neighborhood Council Budget Advocates made the following seven recommendations for budget and financial reform. 

1. The Four-Year General Fund Budget Outlook needs to be updated to reflect anticipated raises for City employees. 
2. Develop a two-year budget as recommended by the City Controller.
3. Conduct open and transparent labor negotiations that require significant outreach to Angelenos before, during, and after the negotiations.
4. Place a measure on the ballot that would prohibit the City from entering into any labor agreement that would create a current or future deficit. In the short term, pass an ordinance. 
5. Develop a long-term infrastructure plan to address deferred maintenance and future capital expenditures.
6. Create a robust Reserve Fund that can only be used in declared emergencies, not to balance the budget as is the current procedure.
7. Establish an Office of Transparency and Accountability to oversee the City’s budget and finances in real time as recommended by the LA 2020 Commission. 

(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].)