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Economic downturn could hit L.A.’s budget hard next year, city controller says

Los Angeles could experience a significant drop in revenue in the upcoming budget year, fueled in large part by the financial downturn triggered by the coronavirus pandemic, City Controller Ron Galperin said Wednesday. The city’s general fund — which pays for police officers, firefighters and other basic services — could see its tax revenues come […]

Los Angeles could experience a significant drop in revenue in the upcoming budget year, fueled in large part by the financial downturn triggered by the coronavirus pandemic, City Controller Ron Galperin said Wednesday.

The city’s general fund — which pays for police officers, firefighters and other basic services — could see its tax revenues come in as much as $598 million below projections from earlier this year, depending on how long the crisis lasts, Galperin said in a memo updating city leaders on his financial projections.

Under that scenario, the city would experience a year-to-year decrease in revenue of $160 million, an amount that would be “very significant,” Galperin said in an interview.

Under a more favorable economic outlook, one that has the shutdowns ending earlier, revenues could come in $194 million below previous projections, leaving the city with a modest increase in overall revenue.

Read the full story on LATimes.com.