Hiring Freeze Stiffened in Bid to Slash L.A. Deficit : Finances: The Police Department’s exemption is eliminated in face of $57.1-million shortfall. City prepares for possible layoffs of up to 1,200.

Facing an unexpected $57.1-million deficit, the Los Angeles City Council on Tuesday unanimously approved a package of budget-cutting initiatives that includes a stricter citywide hiring freeze and removes a blanket exemption for the Police Department.

The council action limits the police force to its current roster of 8,158 sworn officers--down from its authorized strength of 8,332--and freezes nearly $5 million in police salary funds. The council said the department may not begin new classes at the academy “without explicit approval of the council.”

City Administrative Officer Keith Comrie was ordered to begin preparing for the possible layoffs of up to 1,200 city employees, a process that could take two to three months. Comrie was also instructed to begin drafting proposals for new taxes and other “revenue enhancements.”

In addition, the council ordered all departments to transfer all unencumbered funds to the city’s general fund.

“Let me put this into perspective,” said Councilman Zev Yaroslavsky, chairman of the budget and finance committee. “We have no choice. It’s this . . . or raise taxes. Neither is palatable.” But, he added, raising taxes would only worsen the city’s already grim economic condition.

Yaroslavsky and city analysts conceded that the measure may just be a first step in resolving the slowdown in city revenues caused by the recession.

“The economy . . . is soft and may get worse,” said Ron Deaton, assistant chief legislative analyst. “What you have before you is a stopgap measure.”

Yaroslavsky said the deficit could grow $20 million to $30 million or more in the next several months. Since June, more than 2,000 positions have been eliminated in a partial hiring freeze.

The freeze at the Police Department comes a week after Police Chief Daryl F. Gates said he needs an additional 443 officers and 220 civilian employees and an 8.8% across-the-board budget increase next fiscal year to combat crime.

Gates’ estimates do not include the potentially costly measures recommended by the Christopher Commission to reform the LAPD.

Gates could not be reached for comment.

Mayor Tom Bradley was traveling in Egypt on a city trade mission and could not be reached.

But spokesman Bill Chandler said, “The mayor’s last resort during any fiscal crisis is to call for layoffs or institute new taxes. The budgetary steps approved by the City Council are ways for the city to tighten its belt while maintaining a high level of city services.”

Yaroslavsky said the city can expect to enter the next fiscal year, which starts July 1, 1992, facing a deficit of $110 million to $150 million.

The current projected deficit of $57.1 million was caused by a $49.1-million drop in revenues and an $8-million jump in expected liability claims, according to a report prepared by the CAO. Among the biggest decreases in income are a projected $18 million in business taxes, $15 million in sales taxes, $6 million in property transfer levies and $4 million in hotel taxes.