Los Angeles City Approves Furloughs for 15,000 Workers
Los Angeles City Council Declares Fiscal Emergency
Los Angeles, California – The Los Angeles City Council has declared a fiscal emergency, a move that is likely to result in the furloughs of more than 15,000 city workers as it tries to recoup lost revenue due to the COVID-19 pandemic.
On Wednesday, the council members voted to approve the declaration of fiscal emergency, despite warnings that the move could harm critical city services.
The declaration will see civilian workers receive one unpaid day off every two weeks, which translates to a 10% pay cut. The council also said it would encourage another 1,280 employees to proceed on early retirement.
The City Administrative Office said revenues for the 2021 fiscal year are currently difficult to forecast due to the pandemic but are expected to fall below the estimate of $6.68 billion.
City Administrative Officer Richard Llewellyn said the city has already lost more than $50 million. He noted that the revenue projections were based on the economy reopening fully by July.
