WEBVTT 1 00:00:00.680 --> 00:00:03.319 You're listening to k f I, a M six forty 2 00:00:03.520 --> 00:00:06.719 wake up call with me Amy King on demand on 3 00:00:06.799 --> 00:00:08.439 the iHeartRadio app. 4 00:00:17.199 --> 00:00:27.199 Kf I n KOST HD two, Los Angeles, Orange County. 5 00:00:29.120 --> 00:00:47.159 Everyone, jo it's time for your morning wake up call, 6 00:00:54.880 --> 00:00:55.640 and good morning. 7 00:00:55.679 --> 00:00:59.880 This is your wake up call for January first, twenty twenty. 8 00:01:00.399 --> 00:01:03.200 I am Michael Monks, sitting in for Amy King on 9 00:01:03.320 --> 00:01:07.120 this first day of the year. I hope you didn't 10 00:01:07.120 --> 00:01:09.359 party too hard last night that you're waking up with 11 00:01:09.400 --> 00:01:12.480 a headache this morning. Although if you are just now 12 00:01:12.519 --> 00:01:16.200 only on your way home, good for you. Be careful 13 00:01:16.200 --> 00:01:19.840 out there. Happy New Year, La. Lots of fireworks last 14 00:01:19.879 --> 00:01:23.920 night downtown, very difficult to sleep to prepare for tonight's show, 15 00:01:23.959 --> 00:01:26.879 this morning show, I should say, But that's all right. 16 00:01:26.920 --> 00:01:30.319 We're excited a fresh start for all of us. It 17 00:01:30.400 --> 00:01:33.159 was a foggy drive from downtown to Burbank today, but 18 00:01:33.840 --> 00:01:35.599 that fog is gonna break up a little bit, some 19 00:01:35.719 --> 00:01:37.680 of the clouds will go away. We should have a 20 00:01:37.840 --> 00:01:40.400 pretty nice day to day with just partly cloudy skies. 21 00:01:40.439 --> 00:01:43.000 Here's what's up ahead on your very first wake up 22 00:01:43.040 --> 00:01:45.920 call of the year. LA starts the new year with 23 00:01:46.040 --> 00:01:49.480 financial problems just like it ended it. It looks like 24 00:01:49.519 --> 00:01:52.359 one of the city's resolutions for twenty twenty five is 25 00:01:52.400 --> 00:01:56.719 to borrow more money in order to finance debt so 26 00:01:56.760 --> 00:02:00.239 it can continue to pay out large legal settlements. It's 27 00:02:00.239 --> 00:02:03.480 also got a stockpile of money designated for homeless programs 28 00:02:03.480 --> 00:02:06.159 that hasn't been spent. It's all caught the attention of 29 00:02:06.200 --> 00:02:10.360 the city controller and we'll talk with him. Try January, 30 00:02:11.039 --> 00:02:13.280 Are you participating? This is when people give up alcohol 31 00:02:13.360 --> 00:02:16.039 for the month. A pollback in twenty twenty one found 32 00:02:16.159 --> 00:02:18.639 thirteen percent of adults in the US we're going to 33 00:02:18.719 --> 00:02:21.280 try it, But by the next year, a different poll 34 00:02:21.319 --> 00:02:25.039 saw that number go up to thirty five percent. Researchers 35 00:02:25.039 --> 00:02:28.199 have said there are benefits to scaling back on your 36 00:02:28.240 --> 00:02:31.560 alcohol consumption for a month. Well, now there's a new 37 00:02:31.639 --> 00:02:35.479 store just in time for this occasion. It's in South Pasadena. 38 00:02:35.560 --> 00:02:38.960 It's a non alcoholic bottle shop. We'll hear from one 39 00:02:39.000 --> 00:02:42.960 of the owners. And did your shopping habits change in 40 00:02:43.039 --> 00:02:45.639 twenty twenty four? Did you go back to Walmart after 41 00:02:45.680 --> 00:02:50.280 having graduated to fancier stores. Well, lots of people did, 42 00:02:51.039 --> 00:02:53.280 and that made the retail chain one of the big 43 00:02:53.479 --> 00:02:56.199 winners for the year. Now the company thinks it can 44 00:02:56.280 --> 00:03:00.840 keep its new wealthier customers. We'll review the winners and 45 00:03:00.879 --> 00:03:04.400 the losers in retail and restaurants from the past year, 46 00:03:05.080 --> 00:03:07.080 and then, as always, coming up at six oh five, 47 00:03:07.199 --> 00:03:11.240 it's Handle on the news. Still without handle this week, right, 48 00:03:11.360 --> 00:03:14.240 Wayne Resnick, our friend is in for Bill Handel, and 49 00:03:14.319 --> 00:03:16.560 I'll join him for that six o'clock hour as well. 50 00:03:16.639 --> 00:03:18.400 Hope you will join us too. 51 00:03:19.199 --> 00:03:21.120 But let's start with some of the stories coming out 52 00:03:21.159 --> 00:03:25.120 of the KFI twenty four hour newsroom. Some tragic news 53 00:03:25.759 --> 00:03:28.919 out of New Orleans. Ten people have been killed thirty 54 00:03:29.000 --> 00:03:31.599 injured after a vehicle was driven into a crowd in 55 00:03:31.639 --> 00:03:35.120 that city's Canal and Bourbon streets this morning. New Orleans 56 00:03:35.199 --> 00:03:38.240 police earlier said they were responding to a mass casualty 57 00:03:38.280 --> 00:03:42.800 incident and including fatalities. The mayor just spoke and called 58 00:03:42.800 --> 00:03:46.560 it a terrorist attack. The city's emergency alert system has 59 00:03:46.599 --> 00:03:49.280 advised people to stay away from that very busy and 60 00:03:49.319 --> 00:03:54.199 popular area. A brush fire in Pacific Palace Set excuse 61 00:03:54.199 --> 00:03:57.319 me in Pacific Palisades grew to about nine acres this morning, 62 00:03:57.360 --> 00:04:01.719 but firefighters seem to have it under as of this hour. 63 00:04:01.840 --> 00:04:04.039 The first fire crew showed up just after midnight on 64 00:04:04.159 --> 00:04:07.199 Via Las Palmas near Via La Costa. The La County 65 00:04:07.199 --> 00:04:10.280 Fire Department and the La City Fire Department both attack 66 00:04:10.400 --> 00:04:14.800 those flames from the air. The Tournament of Roses parade 67 00:04:14.800 --> 00:04:17.959 marches through Pasadena this morning starting at eight o'clock. People 68 00:04:18.000 --> 00:04:21.040 have camped out overnight for prime real estate to catch 69 00:04:21.040 --> 00:04:23.360 a good view of the five and a half mile route. 70 00:04:23.720 --> 00:04:26.759 If you're thinking of heading that way this morning and 71 00:04:26.800 --> 00:04:30.199 you have not left yet, Public Transit is offering some deals. 72 00:04:30.319 --> 00:04:32.959 La Metro has added early morning trains on the A 73 00:04:33.120 --> 00:04:36.040 line that's the Long Beach to Azusa train. It can 74 00:04:36.079 --> 00:04:38.920 be picked up at Union Station. Metrolink has also added 75 00:04:38.920 --> 00:04:42.079 early morning trains on the Ventura County, Orange County and 76 00:04:42.160 --> 00:04:45.560 the ninety one Paris Valley lines today, as well as 77 00:04:45.600 --> 00:04:48.800 adjusting service on the Antelope Valley and San Bernardino line 78 00:04:48.839 --> 00:04:51.360 so that those trains can arrive at Union Station between 79 00:04:51.360 --> 00:04:54.680 seven and seven thirty am. After this parade floats are 80 00:04:54.680 --> 00:04:58.199 displayed near Victory Park in Pasadena, and La Metro will 81 00:04:58.199 --> 00:05:02.000 offer shuttle service from Sierra Monde Station to the post 82 00:05:02.000 --> 00:05:05.120 parade viewing area. The Rose Bowl, part of this year's 83 00:05:05.120 --> 00:05:08.160 college football playoff, kicks off at one o'clock with the 84 00:05:08.199 --> 00:05:11.600 Ohio State Buckeyes and Oregon Ducks looking to advance to 85 00:05:11.639 --> 00:05:13.160 the semi finals. 86 00:05:13.720 --> 00:05:14.439 So if you're not. 87 00:05:14.439 --> 00:05:17.279 Taking metro and you're gonna be driving on the roads, 88 00:05:17.959 --> 00:05:19.720 maybe we should take a look at them and see 89 00:05:19.759 --> 00:05:21.519 what's going on. Right now, We've got to crash on 90 00:05:21.560 --> 00:05:23.600 the one ten through downtown LA. 91 00:05:26.000 --> 00:05:28.279 That's on the northbound side of the one ten, actually 92 00:05:28.279 --> 00:05:31.120 on the connector to the eastbound ten. Gotta crash partially 93 00:05:31.120 --> 00:05:34.040 blocking the connector road. It's keeping things so slow through there. 94 00:05:34.240 --> 00:05:35.800 And this is also on the one ten north found 95 00:05:35.839 --> 00:05:38.240 through Downtown LA right before the one ten connector. Got 96 00:05:38.279 --> 00:05:40.560 a disabled vehicle. It's blocking the center lane. It's pretty 97 00:05:40.560 --> 00:05:43.079 foggy through that area, so be sure to be sure 98 00:05:43.120 --> 00:05:44.959 to slow down if you're making your way through there 99 00:05:45.240 --> 00:05:47.040 in case that vehicle is still out in lanes and 100 00:05:47.079 --> 00:05:49.240 now heading over to the ninety one eastbound through Bellflower. 101 00:05:49.680 --> 00:05:52.040 Taking a look at the connector to the six oh five. 102 00:05:52.079 --> 00:05:54.240 Looks like the connector to the southbound six oh five 103 00:05:54.319 --> 00:05:56.639 is currently closed from the ninety one eastbound. This is 104 00:05:56.720 --> 00:05:58.519 due to an accident that's currently blocking lanes on the 105 00:05:58.560 --> 00:05:59.120 Connect Road. 106 00:05:59.199 --> 00:06:00.360 C HP is on this there. 107 00:06:00.439 --> 00:06:01.720 Be sure to look out for some stomp and go 108 00:06:01.720 --> 00:06:04.160 traffic from right around Clark Avenue if you're making your 109 00:06:04.199 --> 00:06:05.759 way through there. Now we're taking a look at the 110 00:06:05.800 --> 00:06:08.560 tenees Pound through mid City. Right in Normandy Avenue, who 111 00:06:08.560 --> 00:06:10.560 got a two car smashups over on the right shoulder. 112 00:06:10.680 --> 00:06:12.199 This just occurred, so be sure to look out for 113 00:06:12.199 --> 00:06:13.959 a little bit of accident debris that may still be 114 00:06:14.000 --> 00:06:16.560 in lanes. And over on the sixties Pound through Chino 115 00:06:16.680 --> 00:06:19.240 right after Mountain Avenue, got a report of a disabled vehicle. 116 00:06:19.240 --> 00:06:21.240 It's taken up the right lane. It'll keep you slow 117 00:06:21.279 --> 00:06:23.680 if you're making your way through there. With Southern California's 118 00:06:23.680 --> 00:06:26.519 most accurate traffic reports, I'm Seth Blackman. 119 00:06:26.360 --> 00:06:29.000 Thank you, Seth. The City of la has a serious 120 00:06:29.000 --> 00:06:32.720 budget problem. It's already basically frozen hiring in most departments. 121 00:06:32.759 --> 00:06:35.519 It's cut back on funding for essential city services like 122 00:06:35.639 --> 00:06:38.920 street light repairs and animal shelters, and now it may 123 00:06:38.959 --> 00:06:40.800 have to pull out the credit card to cover its 124 00:06:40.920 --> 00:06:46.079 rising bills related to legal settlements. City Controller Kenneth Mahea 125 00:06:46.120 --> 00:06:48.519 has said the city is going broke. I spoke with 126 00:06:48.600 --> 00:06:52.720 him about the situation in November. Controller Mahea, I noticed 127 00:06:52.759 --> 00:06:56.480 that on your social media explanations about the city's finances, 128 00:06:56.560 --> 00:07:00.519 you were using the word broke a lot going broke. 129 00:07:00.759 --> 00:07:03.040 La is going broke. 130 00:07:03.959 --> 00:07:06.920 You know, those of us who are individuals with money, 131 00:07:07.000 --> 00:07:08.879 we might have an understanding of what it means to 132 00:07:08.879 --> 00:07:10.800 be broke, But man, what does it mean for the 133 00:07:10.800 --> 00:07:13.079 City of La to be going broke? 134 00:07:14.959 --> 00:07:15.279 Right? 135 00:07:15.399 --> 00:07:20.000 So, what it means is that we are depleting our 136 00:07:20.279 --> 00:07:25.279 general fund, specifically our reserve fund. Our reserve fund is 137 00:07:25.319 --> 00:07:30.199 at a record level, low below our five percent, and 138 00:07:30.480 --> 00:07:35.199 essentially we have the city has overestimated how much revenue 139 00:07:35.199 --> 00:07:37.519 we were collected, and we actually ended up collecting two 140 00:07:37.560 --> 00:07:41.439 hundred and twenty two million dollars short of that revenue budget. 141 00:07:41.480 --> 00:07:43.560 So that's that's one big shortfall. 142 00:07:43.639 --> 00:07:46.199 The second thing is that we are overspending a lot, right, 143 00:07:46.240 --> 00:07:50.480 We overspent a lot last fiscal year. The top overspender 144 00:07:50.639 --> 00:07:53.920 was police. And thirdly, we are spending a lot on 145 00:07:54.079 --> 00:07:57.759 liability payouts. We are paying out record level liabilities. And 146 00:07:57.759 --> 00:08:01.160 so when you combine the revenue shortfall for spending and 147 00:08:01.199 --> 00:08:05.120 all the liability payouts, that is just not a good 148 00:08:05.160 --> 00:08:08.079 recipe for being fiscally sound. 149 00:08:08.199 --> 00:08:11.879 To help our listeners understand the reserve fund is I 150 00:08:11.879 --> 00:08:14.279 guess it's something that somebody like Dave Ramsey might tell 151 00:08:14.279 --> 00:08:16.519 you should have some money put aside that you're not 152 00:08:16.680 --> 00:08:20.040 messing with just in case you need to tap into it. 153 00:08:20.079 --> 00:08:24.680 But statutorily, LA prefers at least to keep a certain 154 00:08:25.079 --> 00:08:29.000 percentage of the overall general budget in what is called 155 00:08:29.079 --> 00:08:32.360 the reserve fund, and they have already depleted that to 156 00:08:32.440 --> 00:08:36.200 a point that the words fiscal emergency have been tossed around. 157 00:08:36.279 --> 00:08:38.039 Is that right, right? 158 00:08:38.120 --> 00:08:38.600 Exactly? 159 00:08:38.679 --> 00:08:40.840 So you know, if we get down to two point 160 00:08:40.879 --> 00:08:46.840 seventy five percent of general fund revenues, then we will 161 00:08:47.559 --> 00:08:52.159 have to basically take any vote that takes money from 162 00:08:52.200 --> 00:08:54.679 the reserve front from city council every time we pull 163 00:08:54.720 --> 00:08:57.679 from it. So, you know, we were at record level 164 00:08:57.759 --> 00:09:00.240 highs and now we're below, you know, four percent, and 165 00:09:00.279 --> 00:09:02.799 if we keep paying out all these liabilities and overspending, 166 00:09:02.840 --> 00:09:05.159 it'll just keep going lower and lower. And the city's 167 00:09:05.159 --> 00:09:08.600 actually looking to borrow money now about eighty million dollars, 168 00:09:08.639 --> 00:09:11.159 and you know the cost of that debt is an 169 00:09:11.200 --> 00:09:13.960 additional up to twenty million dollars an interest. 170 00:09:14.000 --> 00:09:16.639 And you're talking about borrowing money because of the liabilities. 171 00:09:16.679 --> 00:09:21.120 And another way to frame that is lawsuits against the city. 172 00:09:21.120 --> 00:09:23.360 And I've sat through a lot of city council meetings 173 00:09:23.600 --> 00:09:26.799 since the spring, a lot of the budget process and 174 00:09:27.120 --> 00:09:30.000 a lot of the budget committee meetings. So before the 175 00:09:30.039 --> 00:09:33.480 new budget was adopted and now after, we are seeing 176 00:09:33.600 --> 00:09:37.360 some pretty significant settlements with people who have sued the 177 00:09:37.360 --> 00:09:41.039 city for a variety of reasons. Sometimes it involves misconduct 178 00:09:41.120 --> 00:09:45.080 and the police department. Sometimes people are falling and hurting 179 00:09:45.159 --> 00:09:47.879 themselves because of poor infrastructure, and we'll get to the 180 00:09:47.960 --> 00:09:51.279 irony of that momentarily. But the city puts aside a 181 00:09:51.320 --> 00:09:54.799 certain amount of money every budget cycle to deal with lawsuits. 182 00:09:54.799 --> 00:09:58.320 Governments get sued. They are only a few months into 183 00:09:58.360 --> 00:10:02.559 this new fiscal year and all ready that money is gone. 184 00:10:02.759 --> 00:10:06.799 How significant is that this year compared to other years. 185 00:10:07.799 --> 00:10:11.000 Yeah, so you know, this year we budgeted eighty seven 186 00:10:11.039 --> 00:10:13.519 million dollars. We've already spent one hundred and forty one 187 00:10:13.559 --> 00:10:16.919 million dollars in the first four months of the fiscal year, 188 00:10:16.960 --> 00:10:17.600 about close. 189 00:10:17.440 --> 00:10:18.440 To ninety million dollars. 190 00:10:18.480 --> 00:10:20.320 Of that, one forty one is police and then the 191 00:10:20.360 --> 00:10:24.600 rest is about related to infrastructure related you know, accidents, 192 00:10:24.639 --> 00:10:28.840 trip and fall, a light falling on someone's head. So 193 00:10:29.000 --> 00:10:32.279 you know, these liability payouts are very, very significant. And 194 00:10:32.360 --> 00:10:35.480 even last fist figure too, we spent about a quarter 195 00:10:35.600 --> 00:10:39.240 billion on these liability payouts as well. So you know, 196 00:10:39.279 --> 00:10:42.240 when we went into this new fiscal year, that reserve 197 00:10:42.320 --> 00:10:45.240 one is just getting depleted, and it's still getting depleted 198 00:10:45.279 --> 00:10:49.519 now we're looking to borrow money in order to replenish it. 199 00:10:49.799 --> 00:10:52.600 Okay, And so when the city is creating its budget, 200 00:10:52.639 --> 00:10:55.960 there's obviously a lot of different departments and they all 201 00:10:55.960 --> 00:10:58.879 get a certain amount of money. And for example, one 202 00:10:58.919 --> 00:11:02.879 of those departments might be Public Works that helps improve 203 00:11:03.440 --> 00:11:07.159 sidewalks that are in bad shape, roads that are in 204 00:11:07.240 --> 00:11:08.960 need of repair. You said trip and fall. As it 205 00:11:09.000 --> 00:11:11.840 relates to lawsuits, they are generically classified that way. But 206 00:11:11.879 --> 00:11:14.159 it's not that simple for a lot of the people 207 00:11:14.200 --> 00:11:18.720 who have been hurt, suffering serious injuries because of bad infrastructure. 208 00:11:18.759 --> 00:11:21.480 And I suppose the irony that I referenced earlier is 209 00:11:21.519 --> 00:11:25.039 that with the budget crunch the city is facing, they 210 00:11:25.080 --> 00:11:27.639 don't have the money to fund those departments in a 211 00:11:27.679 --> 00:11:31.120 way that can help prevent these lawsuits. And so without 212 00:11:31.120 --> 00:11:35.240 the money to fund the departments to fix the bad infrastructure, 213 00:11:35.600 --> 00:11:38.559 more lawsuits are likely. Is that a correct understanding? 214 00:11:39.759 --> 00:11:42.600 Yeah, I would say there are two buckets of what 215 00:11:42.639 --> 00:11:45.120 we're seeing on what makes up the majority of liabilities, right, 216 00:11:45.519 --> 00:11:50.960 it's departments who give rise to liabilities, whether it's excessive 217 00:11:51.080 --> 00:11:53.039 or a lawful use of force which would get sued 218 00:11:53.080 --> 00:11:57.120 a lot on, or it's related to dangerous conditions you know, 219 00:11:57.279 --> 00:12:02.000 such as trip and fall, you know, potholes, and those 220 00:12:02.039 --> 00:12:06.799 are from departments who are underfunded. And the way the 221 00:12:06.840 --> 00:12:09.480 city gets held accountable to fix thing is, as sadly is, 222 00:12:09.519 --> 00:12:10.320 through lawsuits. 223 00:12:11.240 --> 00:12:13.080 And so now the city is in a position where 224 00:12:13.159 --> 00:12:16.159 it might have to issue some sort of debt and 225 00:12:16.399 --> 00:12:20.639 finance and pay more than they already are to settle 226 00:12:20.639 --> 00:12:23.679 some of these lawsuits because the budget is already depleted 227 00:12:24.039 --> 00:12:27.759 and with conditions as they are, leading to the potential 228 00:12:27.799 --> 00:12:31.720 for more lawsuits. From your perspective, do you see a 229 00:12:31.759 --> 00:12:34.120 cycle that's currently endless? 230 00:12:35.519 --> 00:12:39.480 Yes, And city council and the mayor they need to 231 00:12:39.519 --> 00:12:42.200 know that we need to tackle these things at their 232 00:12:42.279 --> 00:12:46.840 root cause because you know, we're taking money from a 233 00:12:46.879 --> 00:12:48.879 reserve fund. But what's also not being talked about is 234 00:12:48.919 --> 00:12:53.759 We basically cut most departments budgets this fiscal year. Even 235 00:12:53.799 --> 00:12:55.840 my office got our budget cut to cover all this 236 00:12:55.960 --> 00:12:59.159 overspending and all these liability payouts, and so you know, 237 00:12:59.200 --> 00:13:01.159 there's no more money to take away from department. So 238 00:13:01.200 --> 00:13:02.840 now we have to just look to borrow money. But 239 00:13:02.879 --> 00:13:05.559 if we don't stop the bleeding at the sourus, then 240 00:13:05.679 --> 00:13:07.120 this is just a never ending cycle. 241 00:13:07.559 --> 00:13:10.120 The City of La also has a pile of money 242 00:13:10.159 --> 00:13:13.360 for homeless services, but it hasn't spent it all. That's 243 00:13:13.399 --> 00:13:16.679 also gotten the attention of the City Controller's office. We'll 244 00:13:16.679 --> 00:13:20.879 have more with Kenneth Mahea coming up, but we'll continue 245 00:13:20.919 --> 00:13:23.879 to check the roads as we all either wake up 246 00:13:23.879 --> 00:13:28.840 on this first day of January twenty twenty five, or 247 00:13:29.440 --> 00:13:31.840 maybe we're heading home from our parties this morning. 248 00:13:31.919 --> 00:13:32.879 Be careful out there. 249 00:13:32.960 --> 00:13:35.159 If you are driving on the ten, be aware there's 250 00:13:35.159 --> 00:13:38.080 a crash going through downtown La. Good morning, it's five 251 00:13:38.200 --> 00:13:40.759 nineteen on your wake up call. Here on KFI. I'm 252 00:13:40.759 --> 00:13:44.279 Michael Monks in for Amy King on this first day 253 00:13:45.159 --> 00:13:47.799 of twenty twenty five. Here's what we're following in the 254 00:13:47.840 --> 00:13:51.480 KFI twenty four hour newsroom. Ten people have been killed, 255 00:13:51.519 --> 00:13:54.879 thirty others injured after a vehicle was driven into a 256 00:13:54.919 --> 00:13:58.240 crowd on New orleans Famed Canal and Bourbon Streets in 257 00:13:58.279 --> 00:14:00.960 the first hours of New Year's Day. New Orleans Mayor 258 00:14:01.000 --> 00:14:04.279 LaToya Cantrell has called it a terrorist attack. The FBI 259 00:14:04.320 --> 00:14:07.240 has taken over the investigation. An agent says at least 260 00:14:07.360 --> 00:14:11.879 one suspected improvised explosive device has been found at the scene. 261 00:14:12.000 --> 00:14:15.679 Actor and director Justin Baldoni has filed a defamation lawsuit 262 00:14:15.720 --> 00:14:18.759 here in LA against The New York Times after actress 263 00:14:18.840 --> 00:14:22.039 Blake Lively filed a complaint with the state alleging a 264 00:14:22.080 --> 00:14:24.480 difficult work environment on the set of the film It 265 00:14:24.639 --> 00:14:27.639 Ends with Us. Baldoni and nine others filed the suit, 266 00:14:27.759 --> 00:14:31.000 arguing The Times to communications out of context in order 267 00:14:31.039 --> 00:14:34.440 to mislead readers with the December twenty one story with 268 00:14:34.559 --> 00:14:40.320 the headline we can bury anyone inside a Hollywood smear machine. 269 00:14:40.480 --> 00:14:43.240 Hundreds of bills signed into law by Governor Gavin Newsom 270 00:14:43.279 --> 00:14:46.240 are set to take effect in California today. The list 271 00:14:46.320 --> 00:14:49.120 of new laws, most of which are now in effect, 272 00:14:49.399 --> 00:14:54.440 include cracking down on retail theft, barring parking near crosswalks, 273 00:14:54.840 --> 00:14:58.600 a ban on book bands and a new designation for 274 00:14:58.679 --> 00:15:01.200 official statem as. I'll have a few of those for 275 00:15:01.320 --> 00:15:03.639 you coming up a little later at the top of 276 00:15:03.639 --> 00:15:06.360 the hour six ZH five Handle on the news. Bill 277 00:15:06.360 --> 00:15:09.399 Handles still off on his holiday. Wayne Resnick is in 278 00:15:09.440 --> 00:15:12.039 for Bill Handle. I'll be there with him. Hope you'll 279 00:15:12.080 --> 00:15:15.080 join us as well. Now, let's finish our conversation with 280 00:15:15.200 --> 00:15:18.240 La City Controller Kenneth Mahea and why he thinks the 281 00:15:18.279 --> 00:15:21.679 City of La is going broke. You talked about the 282 00:15:21.759 --> 00:15:25.759 role of the police and the expenses related to the 283 00:15:25.840 --> 00:15:28.480 lawsuits that the city have been spending, and yes, it 284 00:15:28.519 --> 00:15:31.159 does look like the balk are related to some sort 285 00:15:31.200 --> 00:15:35.039 of police misconduct. And also it's been noted during the 286 00:15:35.080 --> 00:15:37.720 budget process that the police department does take up a 287 00:15:37.759 --> 00:15:40.360 significant amount of the budget. But we also know that 288 00:15:40.399 --> 00:15:43.799 the police department has struggled to reach its hiring goals, 289 00:15:43.960 --> 00:15:47.399 and so I'm wondering from your perspective, whether you see 290 00:15:47.440 --> 00:15:51.240 any adjustment in attitude towards how the police. 291 00:15:50.919 --> 00:15:53.679 Department researchers use written. 292 00:15:57.000 --> 00:15:59.600 You talked about the role of the police and the 293 00:15:59.679 --> 00:16:03.759 expences related to the lawsuits that the city have been spending, 294 00:16:03.799 --> 00:16:06.279 and yes, it does look like the bulk are related 295 00:16:06.320 --> 00:16:10.399 to some sort of police misconduct. And also it's been 296 00:16:10.440 --> 00:16:13.200 noted during the budget process that the police department does 297 00:16:13.279 --> 00:16:15.720 take up a significant amount of the budget. But we 298 00:16:15.799 --> 00:16:18.039 also know that the police department has struggled to reach 299 00:16:18.360 --> 00:16:22.039 its hiring goals. And so I'm wondering from your perspective, 300 00:16:22.559 --> 00:16:26.519 whether you see any adjustment in attitude towards how the 301 00:16:26.519 --> 00:16:29.639 police department is funded and what type of internal changes 302 00:16:30.080 --> 00:16:33.159 need to be made so that you think the city 303 00:16:33.200 --> 00:16:35.360 is being a little more fiscally responsible in that area. 304 00:16:36.279 --> 00:16:38.440 Yes, I think, you know, city council and the man 305 00:16:38.519 --> 00:16:41.799 they need to have a hard reality check on our 306 00:16:41.799 --> 00:16:45.279 fiscal health and they need to see what are the 307 00:16:45.320 --> 00:16:49.519 top line items that are contributing to you know, our 308 00:16:49.600 --> 00:16:53.240 budget deficit and our fiscal crisis. And you know, these 309 00:16:53.279 --> 00:16:55.559 are just the numbers, and they could see it at 310 00:16:55.600 --> 00:17:00.639 the very top, who are the number one contributor to 311 00:17:00.679 --> 00:17:03.440 our liabilities which is police? And also who's the number 312 00:17:03.480 --> 00:17:07.079 one contributed to overspending and that is also the police. 313 00:17:07.079 --> 00:17:10.200 And so they need to have a hard look given 314 00:17:10.240 --> 00:17:12.279 the context that you know they are trying to hire 315 00:17:12.319 --> 00:17:13.720 more and more police officers. 316 00:17:14.519 --> 00:17:17.920 How do we be fiscally responsible, but. 317 00:17:17.920 --> 00:17:21.680 Also you know, in the eyes of government, keep people safe, 318 00:17:21.720 --> 00:17:23.599 and they need to have that tough conversation. 319 00:17:24.200 --> 00:17:26.079 And I think, what's that's not happening? 320 00:17:26.160 --> 00:17:26.279 Right? 321 00:17:26.319 --> 00:17:29.200 I think a lot of like that officials. 322 00:17:28.680 --> 00:17:34.400 Are are are really rightfully so putting the blames on 323 00:17:35.039 --> 00:17:39.240 you know, liabilities related to crumbling infrastructure, which is right, 324 00:17:39.359 --> 00:17:42.160 but you need to also then fund those departments right 325 00:17:42.240 --> 00:17:44.880 who handle the infrastructure. But you know what you're seeing 326 00:17:44.920 --> 00:17:48.720 is they're actually cutting those departments and they're funding. 327 00:17:49.880 --> 00:17:50.319 The police. 328 00:17:50.359 --> 00:17:52.640 They got over one hundred million dollar increase and they're 329 00:17:52.680 --> 00:17:55.400 operating budget this fiscal year while everyone else got their 330 00:17:55.440 --> 00:17:58.319 budget cut. Right, So there needs to just be that hard, 331 00:17:58.440 --> 00:18:02.559 truthful discussion to be right and just be honest, like, 332 00:18:02.599 --> 00:18:04.319 you know, if we are going to fund the police 333 00:18:04.319 --> 00:18:05.920 more than we just have to be honest that we 334 00:18:06.000 --> 00:18:08.599 won't be able to you know, trim those trees, we 335 00:18:08.640 --> 00:18:12.519 won't be able to provide child care centers for low 336 00:18:12.559 --> 00:18:14.759 income founders, we won't be able to fix those sidewalks, 337 00:18:14.759 --> 00:18:17.680 we won't be able to help our overcrowded animal shelters, 338 00:18:17.680 --> 00:18:19.599 and they just need to be upfront about it. But 339 00:18:19.680 --> 00:18:23.119 of course being transparent and honest about that is not 340 00:18:23.599 --> 00:18:27.480 politically you know, looks good for them. So but that's 341 00:18:27.519 --> 00:18:29.319 what needs to happen, and that's that's my job as 342 00:18:29.319 --> 00:18:32.599 a city controller is to provide that transparency and that sunlight. 343 00:18:33.319 --> 00:18:36.440 Kenneth Mahia is the La City Controller, and we're talking 344 00:18:36.440 --> 00:18:39.759 about overspending, but you came out with some analysis this 345 00:18:39.839 --> 00:18:43.759 week that points to a rare case of underspending in 346 00:18:43.839 --> 00:18:46.720 the city government and it's related to homelessness. You say, 347 00:18:46.720 --> 00:18:49.200 in the last fiscal year, which would have run from 348 00:18:49.319 --> 00:18:52.759 July one of twenty twenty three to June thirtieth of 349 00:18:52.839 --> 00:18:55.720 this year, that the city budgeted one point three billion 350 00:18:55.839 --> 00:19:00.799 dollars for homelessness, but it spent under six hundred million 351 00:19:01.079 --> 00:19:04.240 of that. So what does that mean exactly? You know, 352 00:19:04.839 --> 00:19:07.400 we think about government saving money, we might pad it 353 00:19:07.440 --> 00:19:08.920 on the back a bit, but that this seems to 354 00:19:08.920 --> 00:19:11.680 be an area of concern, right. 355 00:19:11.559 --> 00:19:14.839 And just to explain to listeners, because you know, while 356 00:19:14.839 --> 00:19:18.160 the City of La is broke, it's important to understand 357 00:19:18.319 --> 00:19:21.400 how the city is funded. So the City of La 358 00:19:21.559 --> 00:19:25.400 is funded by the general fund and by hundreds. 359 00:19:24.960 --> 00:19:25.920 Of special funds. 360 00:19:26.640 --> 00:19:30.400 The city going broke is more related to the general fund. 361 00:19:30.480 --> 00:19:32.680 That's where the reserve fund is. That's where you know, 362 00:19:32.680 --> 00:19:35.160 the funds of the department pays all the liabilities. That's 363 00:19:35.160 --> 00:19:36.960 the one that's in trouble, which you know we were 364 00:19:37.039 --> 00:19:38.640 just talking about the last ten minutes. 365 00:19:39.279 --> 00:19:40.759 These hundreds of special funds. 366 00:19:40.839 --> 00:19:44.079 These are special funds that come from you know, restricted 367 00:19:44.119 --> 00:19:47.319 sources like state grants for example, or the federal government, 368 00:19:47.640 --> 00:19:51.200 and they can only be used for that specific purpose, 369 00:19:51.279 --> 00:19:54.960 so like homelessness for example. Right, So majority of that 370 00:19:55.839 --> 00:19:59.480 underspending of half a billion dollars, majority of that is 371 00:19:59.519 --> 00:20:02.039 coming from special funds, like one hundred and eighty five 372 00:20:02.079 --> 00:20:05.559 million dollars from state grants that went left on the 373 00:20:05.599 --> 00:20:08.839 table which could have helped with homeless housing assistance and prevention, 374 00:20:09.640 --> 00:20:13.319 or eighty million dollars which wasn't spent from funds from 375 00:20:13.359 --> 00:20:17.440 measure or ULA, right, And so these are restricted funds. 376 00:20:17.759 --> 00:20:20.079 These can roll over to this current fiscal year. 377 00:20:20.480 --> 00:20:23.079 And so what we're seeing is there is an underspending 378 00:20:23.759 --> 00:20:26.640 of that amount of money and the money that was 379 00:20:27.119 --> 00:20:31.599 generally funded like insights safe, that money got reverted back 380 00:20:31.599 --> 00:20:33.960 to the general fund, but then got reappropriated again to 381 00:20:34.039 --> 00:20:36.720 spend this fiscal year. So what you're seeing is is 382 00:20:36.720 --> 00:20:41.119 that for the number one crisis, we're not spending the 383 00:20:41.200 --> 00:20:45.680 money fast enough, especially dealing with you know this, this 384 00:20:45.880 --> 00:20:49.599 this homelessness crisis. And so you know, if you connect 385 00:20:50.319 --> 00:20:52.640 the dots on what the city is overspending on and 386 00:20:52.680 --> 00:20:55.839 what the city's underspending on, and how the city's finance, 387 00:20:55.920 --> 00:20:58.079 you get a better picture on how the finances work 388 00:20:58.119 --> 00:20:59.240 and the city's priorities. 389 00:20:59.400 --> 00:21:01.599 So there's a lot technicalities and understanding the way a 390 00:21:01.680 --> 00:21:04.319 municipality is funded, especially one as large as LA. 391 00:21:04.400 --> 00:21:06.279 And yes, there are a lot of different pools, but. 392 00:21:07.039 --> 00:21:10.319 Do you have any way to explain to us what 393 00:21:10.440 --> 00:21:14.359 the homelessness picture might look like in LA had all 394 00:21:14.359 --> 00:21:17.480 of these funds been expended. Might there be fewer people 395 00:21:17.880 --> 00:21:21.319 living outside? Might there be fewer areas of town that 396 00:21:21.440 --> 00:21:23.680 are disrupted by the presence of camps? 397 00:21:25.240 --> 00:21:27.880 Yeah? I mean you know this this year almost this 398 00:21:28.000 --> 00:21:31.480 went down by a thousand people. It went down to 399 00:21:31.519 --> 00:21:35.359 forty five thousand from forty six thousand, and you know, 400 00:21:35.640 --> 00:21:37.279 that was the first time in a long time that 401 00:21:37.359 --> 00:21:40.920