Mayor Outlines Budget Savings

Highlighting his efforts to slash municipal expenses, Mayor Antonio Villaraigosa said Wednesday that new cost-cutting measures would save Los Angeles more than $33 million.

Villaraigosa said reductions in workers’ compensation costs and the recovery of surplus money from the Recreation and Parks Department would help ease the city’s fiscal pain this year and next.

Those savings can be used to pay city bills or boost reserves as Villaraigosa grapples with a $271-million shortfall in next year’s budget, his first since he was elected May 17.

“We’re digging deep, we’re tightening our belts, and we’re looking for the efficiencies,” Villaraigosa told a City Hall news conference.

The mayor said several city departments have met new goals for reducing workers’ compensation claims, saving nearly $17 million in the current year’s budget.

Another $200,000 is being reaped through the use of fuel-efficient hybrid cars.

The city has found other savings, including more than $7 million in unspent parks funds identified recently by City Controller Laura Chick. That money is being used to refurbish aging public swimming pools.

In addition, Villaraigosa has ordered departments that have borrowed money from the city’s reserve fund to repay outstanding balances, which have reached $9 million so far.

Villaraigosa said he was looking at other potential sources of money, including bonuses paid to city employees who may be ineligible for the extra income.

Villaraigosa will unveil his first budget next month. The City Council must approve it by July 1.