Los Angeles officials are reeling from a financial crisis that has struck nearly a year into the coronavirus pandemic – prompting city administrators to find creative means to balance their budget.
City Administrative Officer Rich Llewellyn, L.A.’s top budget official, revealed in a Friday report that he has asked each department to review all contracts due during the final quarter of 2020-21, to see which payments can be deferred to the next fiscal year, according to the Los Angeles Times.
“If a department believes that they cannot defer all or part of the payment, we asked them to justify the need to make the payment at this time,” Llewellyn said, noting the fiscal year ends June 30, meaning all deferred payments would be made after July 1.
They might want to start with cutting the waste in the city government. Shutting down your city for a year, not collecting taxes, shutting down businesses that may never reopen. Who couldn’t see this coming?
On top of the year long shut down. People are leaving California by the thousands. Businesses are leaving California daily. Not only is the state not opening up, when they do start to there won’t be as many taxpayers left and more are leaving every day.
It’s not just the little mom and pop stores either. Big name companies have left or are planning on moving. Tesla has already broke ground in Texas for their new plant and Oracle is moving it’s headquarters to Houston.
Albertson recently moved his marketing and technology company, Wholesalefund, from California to Arizona, where he now does business in a Scottsdale office park.
Chevron is moving 800 jobs from their Bay Area headquarters to Texas, and Waste Connections shifted more than 100 jobs to Texas from Folsom.
“I tracked form 2011, that 254 companies of all sizes and shapes and kinds left the state for primarily other states,” said Vranich, the president of Spectrum Location Services in Irvine.
He told KCRA 3 that companies leave California for three primary reasons: “High taxes, excessive regulations and the threat of really ridiculous lawsuits.”
Waste Management, the largest recycling company in the world, Woods moved his regional headquarters from California to Arizona.
Of all the states, California ranks dead last for policy friendliness, with key negatives for high taxes, high workers compensation costs and high electricity costs, according to the most recent report from the Small Business & Entrepreneurship Council.
California used to be a magnet for people to move from other states, but U.S. census data shows the population patterns have reversed.