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<v Speaker 1>You're listening to KFI AM six forty on demand.

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<v Speaker 2>KFI AM six forty live everywhere on the iHeartRadio app.

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<v Speaker 2>This is Michael Monks Reports. I'm Michael Monks from KFI News.

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<v Speaker 2>We're with you tonight till nine o'clock on this beautiful

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<v Speaker 2>first Saturday of Spring here in southern California. But we

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<v Speaker 2>got some hot days ahead, way hotter than usual. Highs

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<v Speaker 2>in the eighties on Monday and Tuesday around Metro La.

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<v Speaker 2>Upper eighties, mid nineties in the San Gabriel Valley and

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<v Speaker 2>the Anelope Valley, around ninety in the San Fernando Valley.

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<v Speaker 2>In the Santa Clarita Valley, we'll see the mid eighties

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<v Speaker 2>and the Santa Monica Mountains. Eighties inland Oc. I gotta

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<v Speaker 2>get a place on the coast. It's seventy three, maybe

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<v Speaker 2>seventy five at the beaches on Monday and Tuesday, so

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<v Speaker 2>it's gonna feel like July everywhere else. But it is March,

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<v Speaker 2>and the madness is here. Some teams already punch their

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<v Speaker 2>ticket to the Sweet sixteen Michigan, Texas Tech, Arkansas Purdue.

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<v Speaker 2>We're keeping an eye on this UCLA game right now.

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<v Speaker 2>The Bruins are up eight to seven over Tennessee. Seated

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<v Speaker 2>UCLA second seed to Tennessee. They've tipped off in Lexington, Kentucky,

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<v Speaker 2>a little over fifteen minutes in the first half.

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<v Speaker 3>There.

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<v Speaker 2>We'll keep an eye on that game. My bracket was

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<v Speaker 2>off to a good start. I've not done well today, though.

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<v Speaker 2>How's your bracket? Have you been doing some cussing over it?

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<v Speaker 2>I'll tell you where you'll need to be watching your mouth,

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<v Speaker 2>and that is LA City Hall. Seven city council members

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<v Speaker 2>have filed a motion to stop two words from being

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<v Speaker 2>used during public comment periods. If you've ever watched a

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<v Speaker 2>city council meeting in Los Angeles, you know the public

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<v Speaker 2>comments are a vile display profanity, racism, sexism. It's the

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<v Speaker 2>only time you might feel deep sympathy for a politician.

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<v Speaker 2>Some of these speakers are regulars, they're at every meeting,

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<v Speaker 2>including committee meetings, but they could be limited on what

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<v Speaker 2>they say going forward. Listen to what the two words

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<v Speaker 2>up for banning are. The N word and the C word.

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<v Speaker 2>They are routinely hurled at LA City Hall at our

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<v Speaker 2>elected officials, and those are, of course bad words. They're

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<v Speaker 2>not the only bad words, but right now. This motion

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<v Speaker 2>specifically targets those two words. We're going to go deeper

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<v Speaker 2>into that next week. I'll have plenty of examples of

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<v Speaker 2>these virable public comments, obviously with the edit button used frequently.

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<v Speaker 2>But this story came down late Friday, so we'll gather

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<v Speaker 2>some more details and see how that proceeds this week

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<v Speaker 2>at city Hall in the coming week. But city Hall

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<v Speaker 2>is an appropriate place to be using other bad words.

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<v Speaker 2>I can tell you that the same way you might

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<v Speaker 2>exclaim some profanities when maybe you open up a bill

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<v Speaker 2>that's a billion times larger than you expected. If you

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<v Speaker 2>haven't heard, the City of la is facing a one

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<v Speaker 2>billion dollar budget deficit just in time to put a

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<v Speaker 2>new budget together. So how does that happen? Well, As

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<v Speaker 2>kfi's intrepid city Hall reporter, I'd like to put it

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<v Speaker 2>into some context for you this hour. And first, I

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<v Speaker 2>want to play a clip from a city council meeting

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<v Speaker 2>just this week.

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<v Speaker 4>This is on Tuesday.

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<v Speaker 2>It may not sound that important, but I want you

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<v Speaker 2>to listen because this is a theme that has played

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<v Speaker 2>out all fiscal year.

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<v Speaker 3>Yes, sir, thank you for item thirty two in the

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<v Speaker 3>case entitled Adam Hollins versus City of Los Angeles at all,

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<v Speaker 3>there's a recommendation to expand up to six hundred seventy

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<v Speaker 3>five thousand dollars in settlement. For item thirty three in

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<v Speaker 3>the case entitle Stephanie Hernandez versus City of Los Angeles,

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<v Speaker 3>that's all, there's a recommendation to expand up to two

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<v Speaker 3>hundred and fifty thousand dollars in six seventy five thirty

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<v Speaker 3>four is in the case entitled Margarito ti Lopez AT's

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<v Speaker 3>all versus the City of Los Angeles. That's all. There's

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<v Speaker 3>a recommendation to expand up to eight million dollars million.

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<v Speaker 3>For item thirty five in the case entitle Andrea Are

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<v Speaker 3>not to burn versus City of Los Angeles, that's all,

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<v Speaker 3>there's a recomvation to expend up to ninety five thousand

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<v Speaker 3>dollars in settlement. And for item thirty six in the

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<v Speaker 3>case entitled d'Artagnan Wallace versus City of Los Angeles, it's tall,

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<v Speaker 3>there's a recomvation to expend up to one hundred thousand

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<v Speaker 3>dollars in settlement.

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<v Speaker 1>So there you go.

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<v Speaker 4>Just those items are now before us.

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<v Speaker 5>Here they go listen to this close the role tabulate

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<v Speaker 5>the vote.

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<v Speaker 2>Twelve eyes, twelve eyes, just like that one fell swoop,

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<v Speaker 2>no comments from any council members. They've approved more than

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<v Speaker 2>nine million dollars of your money to be paid in

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<v Speaker 2>legal settlements from people who have sued the city. Now,

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<v Speaker 2>the bulk of that was one obviously, eight million dollars

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<v Speaker 2>is the bulk of all of those. But it is

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<v Speaker 2>routine to hear these settlements every week, coming down two

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<v Speaker 2>fifty here, five hundred there, one point five here, a

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<v Speaker 2>six million there. The city is hundreds of millions of

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<v Speaker 2>dollars over budget this fiscal year in legal settlements alone.

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<v Speaker 2>They are down with their sales revenue, they are down

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<v Speaker 2>with their hotel tax, they are on with their business tax,

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<v Speaker 2>they are down with their property tax. And by the way,

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<v Speaker 2>one of their fancier neighborhoods burned at the ground in January.

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<v Speaker 2>So that's how you add it up to about a

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<v Speaker 2>billion dollars. There was a budget committee meeting right after

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<v Speaker 2>that City council meeting, and there were twenty eight more

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<v Speaker 2>lawsuits on the agenda to consider, so those will make

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<v Speaker 2>their way to city council at some point for a

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<v Speaker 2>full vote as well. The way it works is that,

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<v Speaker 2>you know, the lawyers work out the deals and then

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<v Speaker 2>they bring it to the Budget Committee for consideration. They

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<v Speaker 2>usually meet behind closed doors in a closed session, and

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<v Speaker 2>then they decide at council whether they will pay it.

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<v Speaker 2>And typically the council president will ask the budget committee chairperson,

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<v Speaker 2>is there anything we need to know? They usually say no,

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<v Speaker 2>it's okay, We've gone through these, go ahead and vote

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<v Speaker 2>on them, and that's it. More millions of your dollars

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<v Speaker 2>are paid out. Now, Look, these are legal settlements. They've

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<v Speaker 2>made their way through the court system. We can't dispute

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<v Speaker 2>that somebody has claimed that they were wronged or that

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<v Speaker 2>they hurt themselves. That eight million dollar lawsuit you heard

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<v Speaker 2>was on behalf of a family who had a loved

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<v Speaker 2>one killed by police and it was determined to be

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<v Speaker 2>unjustified and that cost eight million dollars. We're going to

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<v Speaker 2>spend this hour talking about how the city got here,

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<v Speaker 2>and the mayor has come out with I guess the

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<v Speaker 2>first page of a PowerPoint presentation on how we're going

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<v Speaker 2>to address this, and I'm not sure that there's a

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<v Speaker 2>lot of stock that we can put into that yet.

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<v Speaker 2>Because I revisited her budget proposal from a year ago

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<v Speaker 2>and pulled some comments and I'll want you to hear

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<v Speaker 2>those to see how much trust we can put into that.

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<v Speaker 2>The city Controller, Kenneth Mahea, he's all over this and

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<v Speaker 2>this is what he told city council just this week when.

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<v Speaker 5>It comes to the city's budget.

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<v Speaker 2>We know we're in a structural deficit.

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<v Speaker 6>But how did we get here.

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<v Speaker 2>You know we didn't get here.

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<v Speaker 3>We didn't have a COVID or global recession.

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<v Speaker 4>This is something happening from the inside.

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<v Speaker 2>It's coming from inside the house. I hate to be

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<v Speaker 2>a guy since I told you so. I had Kenneth

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<v Speaker 2>Mahia on this very program back in the fall. I

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<v Speaker 2>had him on again a few weeks ago. I can't

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<v Speaker 2>believe that this hasn't been front page news for months

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<v Speaker 2>and months and months that the city was going broke.

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<v Speaker 2>I'm harping on it constantly. It's shocking how much money

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<v Speaker 2>is flying out of that building. That's why I hope

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<v Speaker 2>you continue to listen to KFI AM six forty. It's

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<v Speaker 2>what we've been talking about for months, and we're gonna

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<v Speaker 2>dig into it deep again. This budget as proposed by

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<v Speaker 2>Mayor Bass, it wasn't all rosy, but it wasn't supposed

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<v Speaker 2>to end up like this, So we're going to talk

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<v Speaker 2>more about all of that on Michael Monks Reports.

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<v Speaker 1>You're listening to KFI AM six forty on demand.

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<v Speaker 2>KFI AM six forty live everywhere on the iHeartRadio app.

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<v Speaker 2>Bruins down three right now to Tennessee and Lexington. Here

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<v Speaker 2>in the second round of the NCAA Tournament. Ruins at

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<v Speaker 2>the line, see if they can cut into that score

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<v Speaker 2>with a trip to the sweet sixteen on the line.

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<v Speaker 2>Like so many of you, I just pulled up that

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<v Speaker 2>bald eagle cam and big bear. I've been a little

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<v Speaker 2>cynical about all of it, and I apologize, but it

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<v Speaker 2>is quite lovely this evening. There's a beautiful little eaglet sleeping.

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<v Speaker 2>You can see his little belly moving up and down.

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<v Speaker 2>One of the parent eagles roosting, watching over the scenery,

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<v Speaker 2>making sure there is no danger. As always, there's a

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<v Speaker 2>pile of carnage off to the side. Bloody fish, some

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<v Speaker 2>other furry animal that used to be living a fine

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<v Speaker 2>life until he was caught in these talons and brought

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<v Speaker 2>up to be eglet feed. Question for all of you

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<v Speaker 2>eagle lovers out there, this crossed the wires. Today, a

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<v Speaker 2>pet bird died and some others were injured during a

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<v Speaker 2>shed fire and attic fire in the back of a house,

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<v Speaker 2>and Van.

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<v Speaker 4>Nys see a bunch of tweets or tiktoks about this pet.

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<v Speaker 2>Bird was all there was on social media when we

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<v Speaker 2>lost this poor eaglet last week.

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<v Speaker 4>Hypocrites, all of you.

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<v Speaker 2>There are more important things happening, of course, namely at

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<v Speaker 2>Los Angeles City Hall, where I mean, for the first time,

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<v Speaker 2>it felt like the seriousness of the situation was at

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<v Speaker 2>least being presented to the city government. Now there were

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<v Speaker 2>no actions taken, There weren't a lot of comments from

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<v Speaker 2>your elected officials about the seriousness the gravity of the situation.

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<v Speaker 2>But on two different days you had the City Controller's

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<v Speaker 2>office deliver a presentation to the City Council, and the

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<v Speaker 2>next day you had the city administrator basically read the

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<v Speaker 2>obituary for the current fiscal year budget. I want you

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<v Speaker 2>to first hear from Rick Cole, he works in the

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<v Speaker 2>City Controller's office, laying out just how daunting of a

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<v Speaker 2>task is ahead for the City of Los Angeles.

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<v Speaker 6>This is a multi year challenge and it's a fiscal crisis.

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<v Speaker 6>We're not alone. San Francisco is facing big shortfalls. San

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<v Speaker 6>Diego is, but this is a fiscal crisis, and therefore

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<v Speaker 6>it's important to recognize that all of the wisdom is

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<v Speaker 6>not within the walls of city Hall, really the forty

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<v Speaker 6>four departments other cities. There's a mentality in Los Angeles

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<v Speaker 6>that says we can only learn from giant cities, and

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<v Speaker 6>there's only two other giant cities, and they are so

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<v Speaker 6>different from Chicago and New York that we can't learn

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<v Speaker 6>anything from them. They have a different form of government,

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<v Speaker 6>they have different demographics, they have different weather, And then

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<v Speaker 6>we can't learn from smaller cities because they're smaller than us.

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<v Speaker 6>And the reality is is that Los Angeles has struggled

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<v Speaker 6>since the early nineties with finances, and it is important

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<v Speaker 6>and not only learn from other cities, but from the

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<v Speaker 6>private sector, from the nonprofit sector, from academics, and to

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<v Speaker 6>think fresh about the future. This city is one of

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<v Speaker 6>the most dynamic, diverse, and rich in talent cities on

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<v Speaker 6>the planet, and we're going to have to draw upon

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<v Speaker 6>that talent, that brain power, and that commitment from the

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<v Speaker 6>stakeholders that the Controller has talked about. We've got to

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<v Speaker 6>enlist labor. We've got to enlist business, We've got to

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<v Speaker 6>enlist the nonprofit sector. We've got to most of all,

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<v Speaker 6>enlist the people of Los Angeles in owning this problem

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<v Speaker 6>and helping solve it.

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<v Speaker 2>So it's all hands on deck from the City Controller's office.

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<v Speaker 2>Everybody needs to get involved because the financial situation is

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<v Speaker 2>so bleak in the City of Los Angeles.

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<v Speaker 3>Now.

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<v Speaker 2>I want you to think about the city. If you're

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<v Speaker 2>listening in San Bernardino, if you're listening in Riverside, if

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<v Speaker 2>you're up in a Thousand Oaks, if you're in San Clemente,

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<v Speaker 2>if you're an unincorporated La County, what's happening at Los

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<v Speaker 2>Angeles City Hall could impact the entirety of Southern California.

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<v Speaker 2>You've got to be honest, regardless of what you think

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<v Speaker 2>about the politics or the homeless situation. It's the place,

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<v Speaker 2>it's the most important place in Southern California, and it

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<v Speaker 2>is in serious trouble, far more serious than we thought

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<v Speaker 2>four months ago. And we thought it was pretty serious then,

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<v Speaker 2>but it's only gotten worse. And if like me, you

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<v Speaker 2>live in the City of Los Angeles and you look

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<v Speaker 2>around and you see crumbling sidewalks, damaged streets, overgrown trees,

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<v Speaker 2>graffiti everywhere, trash everywhere, Parks that you cannot use because

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<v Speaker 2>they've been overrun by camps. And you think, what am

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<v Speaker 2>I paying for? This is bad news because what you're

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<v Speaker 2>paying for when you think about your neighborhood is what

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<v Speaker 2>will be on the chomping block. First, City Administrator Matt

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<v Speaker 2>Zabo also spoke to city council this week and finally

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<v Speaker 2>there was some feeling of gravity in the room.

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<v Speaker 4>That this is bad. This is what he told the

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<v Speaker 4>city council.

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<v Speaker 5>Therefore, the gap between anticipated revenues and planned expenditures for

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<v Speaker 5>fiscal year twenty five twenty six is nearly one billion.

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<v Speaker 4>Dollars a billion dollars.

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<v Speaker 5>The proposed budget the mayor will deliver to this council

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<v Speaker 5>in just over a month from today will close that gap,

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<v Speaker 5>but it will require extremely difficult cost cutting decisions. The

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<v Speaker 5>severity of the revenue decline paired with rising costs, has

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<v Speaker 5>created a budget gap that may layoffs nearly inevitable. We

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<v Speaker 5>are not looking at dozens or even hundreds.

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<v Speaker 4>Of layoffs, but thousands.

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<v Speaker 3>Well.

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<v Speaker 5>Layoffs may be necessary. It cannot and will not be

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<v Speaker 5>the only solution, and I can tell you that the

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<v Speaker 5>mayor is absolutely committed to preserving as many jobs in

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<v Speaker 5>city services as possible as we face these economic headwinds.

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<v Speaker 2>That is City Administrator Matt Zabo telling the city council

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<v Speaker 2>that you have spent too much and we have not

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<v Speaker 2>brought in enough revenue, and now, as he said, not dozens,

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<v Speaker 2>not hundreds, but thousands of layoffs are possible. He also

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<v Speaker 2>mentioned services that the mayor is committed to preserving services

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<v Speaker 2>as much as she can. So think about layoffs in

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<v Speaker 2>the public sector here. This isn't going to be faceless

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<v Speaker 2>bureaucrats the way that you can brush off any cuts

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<v Speaker 2>you've heard Doze doing out of Washington, Because it's probably

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<v Speaker 2>not going to be police officers. It's probably not going

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<v Speaker 2>to be the fire department, not after the political storm

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<v Speaker 2>that we've been dealing with after the fires. So who

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<v Speaker 2>are the people who will be on the chopping block

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<v Speaker 2>should it come to this, and it looks like it will.

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<v Speaker 2>The street sweepers, the animal shelter workers, the people who

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<v Speaker 2>might wipe the occasional graffiti off of a downtown building,

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<v Speaker 2>the people that you interact with as a citizen, the

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<v Speaker 2>people whose services you rely on every day. And if

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<v Speaker 2>you think service is bad now, this news is only

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<v Speaker 2>going to make it worse.

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<v Speaker 4>This is bad.

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<v Speaker 1>Now.

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<v Speaker 2>You heard Matt and Zabo say that the mayor is

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<v Speaker 2>committed to limiting the layoffs preserving services as much as

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<v Speaker 2>she can. And it is true that Mayor Bass has

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<v Speaker 2>released a few bullet points about what the plan is.

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<v Speaker 2>We'll dive into those, but I'm also going to bring

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<v Speaker 2>to your attention some of her comments from about one

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<v Speaker 2>year ago when she was releasing this very budget that

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<v Speaker 2>is now a billion dollars short, and we will compare

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<v Speaker 2>what she said then to what we're dealing with now

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<v Speaker 2>and put that into the context of whether we should

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<v Speaker 2>feel good about what this plan is coming from the mayor.

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<v Speaker 2>We're not just going to hear from the mayor. I

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<v Speaker 2>want to hear from you too. You can always join

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<v Speaker 2>our conversation here by opening up the iHeartRadio app, click

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<v Speaker 2>on that talkback button, and we will play some of

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<v Speaker 2>your comments. Why do you think we are in the

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<v Speaker 2>financial mess in Los Angeles that we are?

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<v Speaker 4>What do we need to do? Are you a.

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<v Speaker 2>Resident of LA and are you concerned about potential service

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<v Speaker 2>cuts and layoffs? Join our conversation that way, The Mayor's

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<v Speaker 2>plan preview is coming up next here on Michael Monks Reports.

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<v Speaker 1>You're listening to KFI AM six forty on demand.

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<v Speaker 2>KFI AM six forty live everywhere on the iHeartRadio app.

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<v Speaker 2>We're notted up, We're tied UCLA twenty three, Tennessee twenty three.

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<v Speaker 2>The spot in the sweet sixteen on the line there

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<v Speaker 2>will keep you posted as that goes on. In the meantime,

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<v Speaker 2>bigger fish to fry right here in LA with a

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<v Speaker 2>billion dollar budget shortfall looming, just in time to craft

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<v Speaker 2>next year's budget. Now, the way the budget works in

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<v Speaker 2>the City of Los Angeles is the mayor creates a budget.

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<v Speaker 4>This is the mayor's proposed budget.

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<v Speaker 2>She's supposed to announce that next month, and then it

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<v Speaker 2>goes to city Council and there is a committee of

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<v Speaker 2>special hearings and all that.

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<v Speaker 4>All the departments are paraded through.

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<v Speaker 2>They make their case for how much money they need,

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<v Speaker 2>which positions they should keep, and then the public gets

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<v Speaker 2>the weigh in, and ultimately council will adopt a budget.

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<v Speaker 2>The mayor is obviously aware now of I guess she

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<v Speaker 2>got the text messages about the fiscal crisis and she

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<v Speaker 2>sent out an image on her social media a New

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<v Speaker 2>way of Budgeting. It's titled Mayor Bass has directed city

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<v Speaker 2>officials to provide proposals in order to move the city forward.

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<v Speaker 2>Keep in mind, this budget is supposed to come out

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<v Speaker 2>in a few weeks. She has now directed city officials

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<v Speaker 2>to provide proposals in order to move the city forward.

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<v Speaker 2>I want to talk about the six bullet points that

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<v Speaker 2>she included, and then we're going to revisit her comments

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<v Speaker 2>from a year ago when she released the budget that

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<v Speaker 2>is now a billion dollars short. Priority Number one reduced

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<v Speaker 2>liability costs. If you were listening at the top of

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<v Speaker 2>the show, I played a clip from this week's city

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<v Speaker 2>council meeting where they just vote for almost nine million

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<v Speaker 2>dollars I think more than nine million dollars in lawsuit settlements,

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<v Speaker 2>and the next day had twenty eight more on a

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<v Speaker 2>committee agenda that will eventually make its way to a

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<v Speaker 2>full vote. Hundreds of millions of dollars over budget and

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<v Speaker 2>liability costs just this fiscal year.

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<v Speaker 4>Since July.

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<v Speaker 2>She says she wants to restructure departments and reassign city

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<v Speaker 2>services to refocus the city's work on its most critical services.

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<v Speaker 2>If you want to translate that, open up the iHeartMedia app,

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<v Speaker 2>iHeartRadio app, sorry, and click on the talkback button. We're

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<v Speaker 2>going to play some of those messages throughout the show.

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<v Speaker 2>I want to hear your perspective as well on LA's

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<v Speaker 2>financial situation. Step number three reduced departmental contract expenses. Step four.

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<v Speaker 2>This is some wording that we need to pay attention

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<v Speaker 2>to realize payroll.

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<v Speaker 4>And benefit savings.

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<v Speaker 2>That might be a fancy way of saying layoffs, but

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<v Speaker 2>you also have to keep in mind there are public

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<v Speaker 2>employees in the city who are in unions. Then they

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<v Speaker 2>have contracts those may need to be renegotiated. There are

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<v Speaker 2>some of those unionized public employees who are due to

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<v Speaker 2>receive raises before this fiscal year is over. Will that

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<v Speaker 2>be postponed? Step five is to preserve our reserve fund.

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<v Speaker 2>The way the city council likes to set up a budget,

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<v Speaker 2>I should say, the city administrator says five percent of

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<v Speaker 2>the city's eight billion dollar budget should be in the reserve,

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<v Speaker 2>and once it dips below five percent, they get a

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<v Speaker 2>little nervous. Once it dips below three percent, they get

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<v Speaker 2>really nervous. It's below two and a half percent, right, now,

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<v Speaker 2>so they want to find a way to put more

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<v Speaker 2>money into that. And the six point is to create

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<v Speaker 2>structural reforms to enable ongoing budget balance in future fiscal years.

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<v Speaker 2>So she has directed city officials to provide proposals on

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<v Speaker 2>those six items. Hopefully those come in in time before

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<v Speaker 2>her budget is released in April, and we will be

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<v Speaker 2>there at that unveiling and we'll be talking about that now.

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<v Speaker 2>A year ago, I was at City Hall when Mayor

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<v Speaker 2>bas announced this budget, and I've got a few clips

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<v Speaker 2>that I pulled from that press conference that I'd like

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<v Speaker 2>to play for you, and we'll start with the first one.

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<v Speaker 4>Now.

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<v Speaker 7>In the coming years, we know that we will face

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<v Speaker 7>challenging times amid national, state and local economic uncertainty driven

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<v Speaker 7>by broad economic trends and the coming national election. This

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<v Speaker 7>budget continues our momentum toward change by prioritizing city services

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<v Speaker 7>core city services, but using this as an opportunity as

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<v Speaker 7>a reset, so that our budgets moving forward are more honest, transparent,

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<v Speaker 7>and more focused on getting the job done for Angelino's.

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<v Speaker 2>So, a year ago, the budget presented was supposed to

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<v Speaker 2>be a reset, and she knew then that things were

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<v Speaker 2>a little weird and the country as it relates to

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<v Speaker 2>the economy. It's been a little uncertain. It's only gotten

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<v Speaker 2>more so recently. Those were her remarks at city Hall

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<v Speaker 2>for what her goals were with the budget, and in

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<v Speaker 2>this next clip we'll hear her talk about ethical governance.

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<v Speaker 7>Budget also invests in increased ethical governance and ensures the

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<v Speaker 7>city he remains prepared to endure any uncertainties in the

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<v Speaker 7>year ahead. We made difficult decisions in the process. One

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<v Speaker 7>example is my own office budget is taking a ten

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<v Speaker 7>percent cut. But we have learned that LA needs to

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<v Speaker 7>change the way it budgets so that it is honest,

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<v Speaker 7>transparent and delivers on the people's business. This is something

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<v Speaker 7>the city Controller pointed out. And as soon as this

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<v Speaker 7>budget assigned, we plan to really use this opportunity to

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<v Speaker 7>make a strategic analysis, a comprehensive analysis of all city departments.

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<v Speaker 2>So there she is saying that the budget she presented

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<v Speaker 2>last year was supposed to be prepared for the uncertainty,

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<v Speaker 2>and now that we are a billion dollars short. How

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<v Speaker 2>would you grade that? iHeartRadio out. Click on that talkback

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<v Speaker 2>button will play your messages as well. There's one last

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<v Speaker 2>clip I want to play for you, and let's just

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<v Speaker 2>hear it and I'll talk about it.

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<v Speaker 7>We will begin preparing for next year's budget immediately after

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<v Speaker 7>this year's budget assign so we can take advantage of

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<v Speaker 7>these tough times to determine how departments can function in

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<v Speaker 7>a more efficient and effective manner. And because we are

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<v Speaker 7>expecting difficult times ahead, we are proactively creating a unit

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<v Speaker 7>in the CEO's office to pursue grants that will help

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<v Speaker 7>address these issues. One thing I learned in the years

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<v Speaker 7>I spent in Congress was that Los Angeles leaves dollars

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<v Speaker 7>on the table, and we're going to make sure that

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<v Speaker 7>every dollar that could possibly come to LA, either from

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<v Speaker 7>the public or private sector, we are able to capture.

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<v Speaker 2>So the city last year was creating a budget that

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<v Speaker 2>would be prepared for financial trouble in the fiscal year ahead,

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<v Speaker 2>and then would immediately also start working on the budget

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<v Speaker 2>that's supposed to be presented next month. And here we

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<v Speaker 2>are a month out and the mayor says she has

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<v Speaker 2>now directed city officials to provide proposals in order to

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<v Speaker 2>fix this crisis. So it doesn't appear that the current

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<v Speaker 2>budget was prepared as well as it should be for

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<v Speaker 2>the uncertainty, and it doesn't appear that there was a

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<v Speaker 2>lot of work done ahead of time on the budget

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<v Speaker 2>that is supposed to be released next month. This is

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<v Speaker 2>a very serious crisis and it will affect you, especially

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<v Speaker 2>if you live in the city of Los Angeles. Keep

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<v Speaker 2>in mind, this is a city that has some big

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<v Speaker 2>events coming up, you know, the Olympics. How are we

423
00:24:42.960 --> 00:24:45.640
<v Speaker 2>going to throw a party like that with no money.

424
00:24:47.319 --> 00:24:49.200
<v Speaker 2>We're going to talk about the Olympics in the next

425
00:24:49.240 --> 00:24:52.119
<v Speaker 2>hour because our LA twenty eight committee folks were over

426
00:24:52.240 --> 00:24:56.319
<v Speaker 2>in Greece presenting to the International Olympic Committee about where

427
00:24:56.319 --> 00:24:59.000
<v Speaker 2>we stand, and they talk a bit about recovering from

428
00:24:59.039 --> 00:25:01.880
<v Speaker 2>the wildfires and all that, but also how we'll be

429
00:25:01.920 --> 00:25:06.720
<v Speaker 2>dealing with our traffic and the investments that the region

430
00:25:06.759 --> 00:25:10.359
<v Speaker 2>has been making in Metro for example. It's gonna cost money.

431
00:25:11.839 --> 00:25:15.079
<v Speaker 2>It doesn't look like we're gonna have any We're gonna

432
00:25:15.079 --> 00:25:19.400
<v Speaker 2>continue to follow this just like we do every day

433
00:25:19.400 --> 00:25:23.799
<v Speaker 2>here KFI Am six forty, and we'll take your comments

434
00:25:23.839 --> 00:25:26.839
<v Speaker 2>as well on the iHeartRadio app. Click on the talkback button.

435
00:25:26.880 --> 00:25:30.720
<v Speaker 2>We'll play some of those messages coming up next. There's

436
00:25:30.759 --> 00:25:33.680
<v Speaker 2>one way that the city should be making money, and

437
00:25:33.960 --> 00:25:35.799
<v Speaker 2>it does try.

438
00:25:37.279 --> 00:25:40.759
<v Speaker 4>But even Los Angeles can't seem to get this right.

439
00:25:40.920 --> 00:25:45.240
<v Speaker 2>They've managed to lose money on what is usually a

440
00:25:45.319 --> 00:25:48.640
<v Speaker 2>gimme in the Revenue Department for Local governments.

441
00:25:49.039 --> 00:25:50.119
<v Speaker 4>We'll talk about that next.

442
00:25:50.400 --> 00:25:54.240
<v Speaker 1>You're listening to KFI AM six forty on demand.

443
00:25:54.680 --> 00:25:58.960
<v Speaker 2>KFI AM six forty live everywhere on the iHeartRadio app.

444
00:25:59.000 --> 00:26:03.160
<v Speaker 2>It's halftime in Lexington, Kentucky. The Bruins are down seven,

445
00:26:03.720 --> 00:26:07.400
<v Speaker 2>seven seeded UCLA trailing second seeded Tennessee thirty two to

446
00:26:07.400 --> 00:26:07.960
<v Speaker 2>twenty five.

447
00:26:08.960 --> 00:26:09.079
<v Speaker 3>Win.

448
00:26:09.160 --> 00:26:12.119
<v Speaker 2>Are going to the Sweet sixteen, six seeded BYU just

449
00:26:12.240 --> 00:26:16.119
<v Speaker 2>upset three seeded Wisconsin. That could be big for those

450
00:26:16.160 --> 00:26:20.240
<v Speaker 2>of you in the bracket pools this year. And Houston

451
00:26:20.279 --> 00:26:23.920
<v Speaker 2>and Gonzaga in the final two minutes. Top seeded Houston

452
00:26:24.000 --> 00:26:27.200
<v Speaker 2>is up seven right now. I hope you're enjoying all

453
00:26:27.200 --> 00:26:32.119
<v Speaker 2>this madness. There's plenty of madness in Los Angeles. We

454
00:26:32.160 --> 00:26:35.759
<v Speaker 2>did some stories recently about how you're not supposed to

455
00:26:35.759 --> 00:26:38.079
<v Speaker 2>be parking in bike lanes, and this time they mean it.

456
00:26:38.160 --> 00:26:40.799
<v Speaker 2>If you get caught parking in the excuse me bike lane,

457
00:26:40.839 --> 00:26:44.359
<v Speaker 2>the bus lane, your ticket's like two hundred and sixty

458
00:26:44.359 --> 00:26:47.599
<v Speaker 2>seven dollars. They are not messing around. They need the

459
00:26:47.640 --> 00:26:52.200
<v Speaker 2>cash and that's a big fine, so you got to

460
00:26:52.279 --> 00:26:56.200
<v Speaker 2>keep it moving. But there are other ways that you

461
00:26:56.279 --> 00:27:01.319
<v Speaker 2>can violate parking laws meters expiring, no parking zonezes, loading zones,

462
00:27:01.400 --> 00:27:05.000
<v Speaker 2>handicapped spots that you're not supposed to be in, and

463
00:27:05.680 --> 00:27:10.359
<v Speaker 2>the city collects that money. And none of us likes

464
00:27:10.640 --> 00:27:13.759
<v Speaker 2>getting a ticket, but that money can be put to

465
00:27:13.799 --> 00:27:16.519
<v Speaker 2>good use when it comes in, and cities depend on it.

466
00:27:18.119 --> 00:27:20.519
<v Speaker 2>I know there are smaller communities that don't have the

467
00:27:20.519 --> 00:27:23.039
<v Speaker 2>type of revenue a city like Los Angeles should where

468
00:27:23.720 --> 00:27:25.799
<v Speaker 2>I mean, they've got patrol people out there watching every

469
00:27:25.839 --> 00:27:27.480
<v Speaker 2>little stop sign to make sure you don't do one

470
00:27:27.480 --> 00:27:29.119
<v Speaker 2>of those rolling stops that you saw. I mean, they're

471
00:27:29.119 --> 00:27:31.759
<v Speaker 2>collecting every single penny. There's money to be made in

472
00:27:31.799 --> 00:27:36.720
<v Speaker 2>parking enforcement and LA seems to know it. But this

473
00:27:36.799 --> 00:27:42.039
<v Speaker 2>city can't even get this right. A new report from Crosstown, LA,

474
00:27:42.160 --> 00:27:45.559
<v Speaker 2>a really excellent report, analyzed a bunch of this data

475
00:27:47.599 --> 00:27:50.799
<v Speaker 2>and they found that in the fiscal year that ended

476
00:27:50.920 --> 00:27:55.799
<v Speaker 2>last year, and again it just quick municipal econ one

477
00:27:55.839 --> 00:27:59.200
<v Speaker 2>oh one fiscal years they run from July first to

478
00:27:59.279 --> 00:28:03.359
<v Speaker 2>June thirty, so the current fiscal year will end at

479
00:28:03.359 --> 00:28:06.359
<v Speaker 2>the end of June, but the one that ended at

480
00:28:06.400 --> 00:28:09.079
<v Speaker 2>the end of June last year, the city collected one

481
00:28:09.200 --> 00:28:13.640
<v Speaker 2>hundred and ten million dollars in parking fines.

482
00:28:14.680 --> 00:28:17.079
<v Speaker 4>One hundred and ten million dollars. That's a good chunk

483
00:28:17.119 --> 00:28:17.839
<v Speaker 4>of change.

484
00:28:18.640 --> 00:28:26.400
<v Speaker 2>But Crosstown LA analyzed the costs of collecting those fines, salaries,

485
00:28:26.880 --> 00:28:31.480
<v Speaker 2>equipment used, the processes, and all of that. That added

486
00:28:31.559 --> 00:28:35.519
<v Speaker 2>up to eighty eight million dollars. And then, when you

487
00:28:35.599 --> 00:28:40.319
<v Speaker 2>work a good government job like parking enforcement, you've also

488
00:28:40.359 --> 00:28:45.200
<v Speaker 2>got a pension and you have benefits. And according to

489
00:28:45.200 --> 00:28:50.079
<v Speaker 2>this data released by Crosstown LA, the city spent one

490
00:28:50.200 --> 00:28:54.319
<v Speaker 2>hundred and seventy six million dollars. The City of Los

491
00:28:54.359 --> 00:28:58.599
<v Speaker 2>Angeles spent one hundred and seventy six million dollars to

492
00:28:58.720 --> 00:29:02.319
<v Speaker 2>collect one hundred ten ten million dollars in parking fines.

493
00:29:03.599 --> 00:29:06.720
<v Speaker 2>And that's why you heard this week term words like

494
00:29:06.759 --> 00:29:08.240
<v Speaker 2>fiscal crisis.

495
00:29:09.559 --> 00:29:10.279
<v Speaker 4>At city hall.

496
00:29:13.200 --> 00:29:17.440
<v Speaker 2>Crosstown LA reports that parking finds used to be a

497
00:29:17.440 --> 00:29:25.599
<v Speaker 2>reliable source of revenue, but LA's parking enforcement program has

498
00:29:25.759 --> 00:29:32.880
<v Speaker 2>produced a widening hole in the city's finances, racking up

499
00:29:32.960 --> 00:29:36.240
<v Speaker 2>three hundred and seventy four million dollars more in total cost,

500
00:29:36.319 --> 00:29:42.759
<v Speaker 2>and it has from fines since twenty sixteen, so that's

501
00:29:43.720 --> 00:29:48.640
<v Speaker 2>eight years that they've analyzed and found that the city

502
00:29:48.640 --> 00:29:51.480
<v Speaker 2>brought in three hundred and seventy four million dollars less

503
00:29:51.519 --> 00:30:00.759
<v Speaker 2>than it cost to collect the fines. That's why the

504
00:30:00.839 --> 00:30:08.960
<v Speaker 2>city is failing financially and across down LA suggests that

505
00:30:09.000 --> 00:30:14.160
<v Speaker 2>there are various factors for this, that there are vacancies

506
00:30:14.519 --> 00:30:18.640
<v Speaker 2>and cuts in staffing that have contributed to a decline

507
00:30:18.680 --> 00:30:21.440
<v Speaker 2>in citations. Keep that in mind as we talk about

508
00:30:21.519 --> 00:30:27.559
<v Speaker 2>layoffs in the coming year, and those traffic officers who

509
00:30:27.559 --> 00:30:32.599
<v Speaker 2>still exist that they've got more work to do. The

510
00:30:32.640 --> 00:30:35.799
<v Speaker 2>people who write the parking tickets in La, by the way,

511
00:30:35.920 --> 00:30:41.920
<v Speaker 2>are usually not police officers. They work for the Department

512
00:30:41.920 --> 00:30:46.359
<v Speaker 2>of Transportation. It's a different unit. And that's why I

513
00:30:46.359 --> 00:30:49.359
<v Speaker 2>would be nervous when I hear thousands of layoffs possible

514
00:30:49.359 --> 00:30:51.319
<v Speaker 2>in the city and that were my job, because you

515
00:30:51.400 --> 00:30:54.039
<v Speaker 2>have to assume the police are safe, that the fire

516
00:30:54.079 --> 00:30:58.720
<v Speaker 2>department is safe. But if you're anybody else, you've got

517
00:30:58.759 --> 00:31:02.640
<v Speaker 2>to be shaking in your boots. And when the city

518
00:31:02.680 --> 00:31:05.559
<v Speaker 2>cannot manage its own finances and it makes these cuts,

519
00:31:05.640 --> 00:31:08.680
<v Speaker 2>it loses out on the opportunities to bring more money

520
00:31:08.720 --> 00:31:16.119
<v Speaker 2>in because having the appropriate number of traffic enforcement officers

521
00:31:17.079 --> 00:31:21.480
<v Speaker 2>should bring you the amount of money that you forecast. Yeah,

522
00:31:21.480 --> 00:31:23.480
<v Speaker 2>they've got pensions and health benefits and all of that,

523
00:31:23.599 --> 00:31:28.039
<v Speaker 2>but you should be able to budget it appropriately and

524
00:31:28.079 --> 00:31:33.000
<v Speaker 2>it's not working right now. But that's not the only

525
00:31:33.079 --> 00:31:36.839
<v Speaker 2>area where this is screwing with the city finances. Top

526
00:31:36.880 --> 00:31:40.319
<v Speaker 2>of the show, we mentioned these lawsuits. You know a

527
00:31:40.359 --> 00:31:43.839
<v Speaker 2>lot of these lawsuits they get settled for one rand

528
00:31:43.839 --> 00:31:45.839
<v Speaker 2>two hundred and fifty grand, but they're happening every week,

529
00:31:45.920 --> 00:31:49.359
<v Speaker 2>so they're adding up. They're listed as trip and fall,

530
00:31:49.480 --> 00:31:52.039
<v Speaker 2>trip and fall, Trip and fall, that's the category that

531
00:31:52.039 --> 00:31:54.720
<v Speaker 2>they're in, and it usually involves somebody being injured by

532
00:31:54.759 --> 00:32:01.920
<v Speaker 2>city infrastructure, a sidewalk that was broken, a a street

533
00:32:02.039 --> 00:32:05.839
<v Speaker 2>light that may have fallen on somebody's car, and some

534
00:32:05.920 --> 00:32:09.759
<v Speaker 2>of them are terrible injuries, and so the city has

535
00:32:09.799 --> 00:32:13.359
<v Speaker 2>to pay out and then they don't have the money

536
00:32:13.920 --> 00:32:17.440
<v Speaker 2>to invest in the infrastructure in the first place to

537
00:32:17.519 --> 00:32:21.160
<v Speaker 2>prevent these things from happening. And it's only going to

538
00:32:21.200 --> 00:32:27.160
<v Speaker 2>get worse. The city is in a lot of trouble.

539
00:32:27.200 --> 00:32:29.359
<v Speaker 2>Like I said, we want to hear from you as well,

540
00:32:29.400 --> 00:32:31.720
<v Speaker 2>and you've been playing along. Do we have some of

541
00:32:31.720 --> 00:32:34.039
<v Speaker 2>those talkbacks in the system ready to go yet?

542
00:32:34.119 --> 00:32:36.200
<v Speaker 4>Roll we do. Let's hear the first one.

543
00:32:38.279 --> 00:32:43.160
<v Speaker 8>Hi, Michael Karen Bass is a total idiot. She has

544
00:32:43.319 --> 00:32:47.240
<v Speaker 8>no experience in running anything, let alone a city the

545
00:32:47.279 --> 00:32:50.279
<v Speaker 8>size of the Los Angeles. I can't believe you could

546
00:32:50.319 --> 00:32:53.759
<v Speaker 8>even sit there and listen to these people. There's such liars.

547
00:32:54.039 --> 00:32:58.200
<v Speaker 8>They've ruined everything. We're doomed. I'm moving away.

548
00:32:59.200 --> 00:33:01.680
<v Speaker 2>Good luck to you. I know you'll miss the weather.

549
00:33:01.839 --> 00:33:03.480
<v Speaker 2>That's what sucks about it. If you feel like you

550
00:33:03.559 --> 00:33:06.200
<v Speaker 2>got to leave it, it is often beautiful. Here we

551
00:33:06.279 --> 00:33:07.440
<v Speaker 2>got another one, Raoul.

552
00:33:07.519 --> 00:33:12.920
<v Speaker 1>Careen bass is full of s reading from a scriep

553
00:33:13.799 --> 00:33:15.759
<v Speaker 1>script s her.

554
00:33:17.039 --> 00:33:17.720
<v Speaker 4>Full of s.

555
00:33:18.079 --> 00:33:20.359
<v Speaker 2>Somebody got the memo about the new rules at city Hall.

556
00:33:20.440 --> 00:33:23.200
<v Speaker 2>You've got to watch your language. And I've got another

557
00:33:23.240 --> 00:33:24.039
<v Speaker 2>one I want to play for you.

558
00:33:27.839 --> 00:33:31.000
<v Speaker 9>Hey there, I'm not sure if you actually looked at

559
00:33:31.039 --> 00:33:35.160
<v Speaker 9>the city budget here, but there is so much waste

560
00:33:35.880 --> 00:33:39.400
<v Speaker 9>it's not even funny. The fact that union employees get

561
00:33:39.480 --> 00:33:42.680
<v Speaker 9>paid like ninety seven dollars an hour to stand around

562
00:33:42.680 --> 00:33:45.720
<v Speaker 9>and do nothing. You know, a dozen of them while

563
00:33:45.759 --> 00:33:49.480
<v Speaker 9>one guy digs a hole. No, man, there's so much

564
00:33:49.559 --> 00:33:51.839
<v Speaker 9>waste that's not even funny. They can cut a billion

565
00:33:51.880 --> 00:33:55.599
<v Speaker 9>out of the budget and not even flinch about it.

566
00:33:55.640 --> 00:33:56.559
<v Speaker 9>But oh, it's got it.

567
00:33:57.440 --> 00:34:00.079
<v Speaker 2>We are so grateful that you're participating in the conversation.

568
00:34:00.359 --> 00:34:02.680
<v Speaker 2>If you are listening and want to join as well,

569
00:34:02.759 --> 00:34:05.400
<v Speaker 2>open up the iHeartRadio app, click on the talkback button.

570
00:34:05.400 --> 00:34:09.119
<v Speaker 2>We will play more messages throughout the next hour. Coming

571
00:34:09.239 --> 00:34:12.519
<v Speaker 2>up in the next segment, you know how much how

572
00:34:12.519 --> 00:34:14.800
<v Speaker 2>many billions of dollars the city of the county are

573
00:34:14.840 --> 00:34:18.440
<v Speaker 2>spending to address homelessness. Well, it turns out that after

574
00:34:18.480 --> 00:34:21.320
<v Speaker 2>a couple of scathing audits, the city of Los Angeles

575
00:34:21.360 --> 00:34:24.159
<v Speaker 2>has realized that they have nobody at city Hall keeping

576
00:34:24.199 --> 00:34:27.519
<v Speaker 2>track of the money. They said that this will past week.

577
00:34:27.719 --> 00:34:29.639
<v Speaker 2>I heard it. I've got the clip. I'm going to

578
00:34:29.679 --> 00:34:32.199
<v Speaker 2>play it for you and tell you what their plan

579
00:34:32.320 --> 00:34:34.480
<v Speaker 2>is to address that. There's more to come in the

580
00:34:34.519 --> 00:34:37.480
<v Speaker 2>next hour here on Michael Monks Reports on KFI AM

581
00:34:37.639 --> 00:34:38.239
<v Speaker 2>six point forty.

582
00:34:38.320 --> 00:34:41.800
<v Speaker 1>Keep it here KFI AM six forty on demand