The Los Angeles Department of Water and Power announced Tuesday that it will not make an anticipated $73.5 million transfer to Los Angeles’ General Fund. After the announcement, a chain reaction of public criticism, finger-pointing and service cuts ensued.
Mayor Antonio Villaraigosa asked the city to cut down some city services to two days a week. These “non-revenue-generating” services include street-sweeping, parks and libraries.
Council Member Eric Garcetti addresses the funding issues facing the city. (Video by Christian Martinez)
“The fact is, we have to act, and we have to act quickly,” Villaraigosa said to reporters at City Hall. “We are running out of cash. The facts don’t lie.”
Services that won’t be affected in the Mayor’s proposal are those that serve public safety, like police and fire departments.
Without the proposed DWP transfer, the general fund will be $10 million short by May 5, City Controller Wendy Greuel said. The mayor plans to call an emergency meeting of the city’s Executive Employee Relations Committee to try to find ways to replenish the fund.
LADWP’s S. David Freeman talks about why the department’s decision to no provide the fund transfer. (Video by Christian Martinez)
Greuel sent a letter to the Los Angeles City Council asking it to transfer $90 million from the City Reserve Fund to its General Fund. Greuel said the transfer is necessary so that she can “continue to pay the city’s bills, and ensure the fiscal solvency of the city.”
DWP interim General Manager S. David Freeman said in a letter that the anticipated transfer was contingent on city approval of an electricity rate hike. The hike was rejected by the city last week, and the transfer was rejected by DWP on Tuesday.
