Mayor Richard Riordan and several other Los Angeles officials gathered Tuesday to congratulate themselves and state legislators for cutting the city's losses in recently completed budget negotiations. But the officials warned that the city still has financial problems.
Los Angeles will lose about $24 million in state support during the fiscal year that began July 1, far short of the $300-million loss that had been projected. Riordan and City Council President John Ferraro credited Assemblyman Richard Katz (D-Sylmar) and state Senate President Pro Tem David A. Roberti (D-Van Nuys) for leading efforts to sustain financial support for Los Angeles.
But Riordan and the others said the city will still have to find up to $50 million in savings in a $3.8-billion budget because of other potential losses, including the possible failure of a November ballot measure to keep in place a half-cent sales tax.