LOS ANGELES COUNTY : 8% Spending Cut Urged for Most Departments

Chief Administrative Officer Sally Reed recommended in a report released Friday that county departments immediately adopt tough fiscal measures that will probably mean layoffs and service cuts to help eliminate a potential $640-million budget gap this fiscal year.

In the report, to be considered by the Board of Supervisors next week, Reed asks all departments except for health services to implement an across-the-board 8% spending cut through this fiscal year.

She is also recommending a freeze on hiring, transfers and promotions. The Department of Public Works and the Fire Department would be exempted from the freeze because they have separate revenue sources that are not dependent on the beleaguered general fund.

Meanwhile, the county’s mounting financial problems have caught the attention of the grand jury, which, in a special interim report sent to the board, suggests a series of measures to rein in spending.

The ideas include establishing contingency reserves to deal with financial emergencies, forgoing construction projects until financing has been secured and establishing a blue-ribbon panel of experts and citizens to review the budget plan.