Hahn Signs City Budget That Avoids Service Cuts

Los Angeles Mayor James K. Hahn on Friday signed a $4.83-billion budget for next year that preserves current levels of city services.

At the start of the budget process, officials anticipated an agonizing debate over how to allocate diminishing city revenues. Instead, the city’s fiscal health improved, allowing cuts in services to be avoided.

Drafting the 2002-03 budget “could have been a very painful process,” Hahn said Friday during an appearance in Silver Lake.

“Everybody worked real hard ... on the toughest budget year we’ve had probably in a decade. I was very pleased with the way it turned out.”

Earlier in the year, officials predicted a $250-million budget shortfall because of falling tax revenues, and warned that everything but public safety programs could face cuts. But the local economy improved, allowing the city to close most of the gap.

When Hahn presented the City Council his proposed budget in April, he preserved current levels of services and slightly increased the amount of money for the Police and Fire departments.

To make up a $38-million shortfall, his budget team trimmed programs inside the city bureaucracy, such as mail services, building upkeep and travel. A citywide hiring freeze was kept in place.

The mayor’s proposed budget sailed through the City Council, which made only minor changes to the spending document.

After projections that city revenues will go up more than anticipated, the council increased the city’s reserve fund from $64 million to $102 million.

The council rejected Hahn’s proposal to eliminate several dozen police positions in special offices and transfer that staff back out into the field.

Hahn said he did not make any changes to the final budget document the council submitted to him last week. The new budget takes effect July 1, the beginning of the 2002-03 fiscal year.