Mayor Urges City Not to Override CRA Budget

Mayor Richard Riordan asked the Los Angeles City Council on Thursday not to override a budget proposed by the Community Redevelopment Agency board, saying he agrees with the board that bonds should not be used to fund administrative expenses.

Board members have asked CRA administrator John Molloy to revise his budget to eliminate at least $1 million in debt financing of administrative expenses. Some board members have suggested additional staff cuts may be necessary beyond the 10 positions to be eliminated in Molloy’s budget.

The board Thursday asked Molloy to develop alternatives that might include a reorganization and additional staff cuts, and report back within 60 days.

“I strongly oppose issuing debt to pay administrative salaries when sufficient funds are available to move projects forward,” Riordan wrote to the council. “I urge you to support the CRA Commission recommendations.”

The council, which may take up the issue today, is concerned the board may try to cut the 210-member staff beyond the 10 positions proposed by Molloy, which some fear could hurt redevelopment projects in their districts.

Councilman Mark Ridley-Thomas said the mayor isn’t spelling out what the board’s proposal might be.

“He [Riordan] is basically saying downsize,” Ridley-Thomas said. “The question is what projects would lose out in that regard?”

Meanwhile, Councilman Rudy Svorinich Jr. has drafted a motion asking the CRA board to explain why it has not taken action on Molloy’s contract, which expires Sept. 1.

Ridley-Thomas shares the concern there may be a move against retaining Molloy, who has resisted the cuts sought by some board members.

“I’m concerned that they haven’t committed to review his contract,” Ridley-Thomas said. “My view is we need continuity.”