LA Broke, Lights Going Out?

LA Broke, Lights Going Out?

LA has gone broke, so now some of its city offices are shutting down for two days a week. The mayor of Los Angeles, Antonio R. Villaraigosa , yesterday, ordered that all city agencies - except for public safety and those that generate revenue be shut down for two days per week starting next week.  

The Associated Press reports that on Monday, the city controller warned the city's leaders that LA would not be able to pay its employees or vendors within a month. She urged the city to transfer $90 million from its reserves. The Department of Water and Power refused to make a $73 million payment to the city. The agency says that rates would have to be raised significantly to make such a payment, and the City Council, made up of elected officials, whom wisely didn't want to over burden folks during an election year, approved only a smaller increase.  So the people in LA will have three days to do business with the city. For most folks, whom don't have daily dealings with city government, this may seem a better deal than a large rate increase for water and electricity.