CRA Budget Calls for Staff Cut; Branches to Stay Open

The head of the Los Angeles redevelopment agency proposed a $160-million budget Thursday that trims staff from 210 to 200, but refused to follow advice to close 10 branch offices to save money.

Community Redevelopment Agency administrator John Molloy said the budget he proposed Thursday provides reasonable measures for ensuring that the agency can continue to fulfill its mission of curing blight.

“We have a very active and positive work program in our 31 redevelopment project areas and a good core of staff to do the work,” Molloy said.

But one redevelopment commissioner, Keith Richman of Northridge, said the staff should be cut by another 20 to 30 positions to avoid issuing bonds, and use grant funds to pay for administration costs.

“I am concerned about leveraging the agency’s future,” Richman said. “Using revenue from bond offerings and carry-over funds is leveraging against the city’s future ability to do projects.”

The budget includes $66 million for debt service, $71 million for new project expenses and $22 million for administration.

To balance the budget and support a staff of 200, Molloy proposed the issuance of $8.8 million in new bonds, of which $1.1 million would go to administrative overhead and the rest would go to new projects. Molloy also proposed using some unspent grant funds to pay administrative costs.

Any bond and grant money spent on administration is money that cannot be spent on new redevelopment activities, Richman said. He said there is debate within the agency about the level of administrative cuts.

The panel will take up the proposed budget June 3.

Molloy also decided against an agency task force recommendation to close the 10 redevelopment field offices and consolidate the staff in the downtown headquarters.

The group of agency mid-level managers had suggested the consolidation would allow for better pooling of the agency’s limited resources.

But Molloy said the field offices are important.

“I firmly believe it is the right thing to do public-policy-wise, to try to bring government closer to the people,” Molloy said.