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High salaries drive L.A. deficit

| Sunday, May 11 2008 2:18 PM

Last Updated: Sunday, May 11 2008 2:18 PM

Despite a record city budget deficit, thousands of Los Angeles employees earn more than $100,000 a year.

More than 21,000 city workers take home $70,000 or more a year, the Daily News of Los Angeles reported Sunday. More than 6,000 take home more than $100,000.

City leaders are grappling with a $406 million budget shortfall, and have announced proposed fee hikes and service cuts.

Mayor Antonio Villaraigosa and others have called for cutting nearly 800 positions and enforcing mandatory furloughs for city workers.

In the past year alone, gross annual payroll costs have soared $120 million for nearly 48,000 city employees. The total payroll stands at $3.2 billion, or nearly half Los Angeles' $7 billion budget.

The city has some of the best paid employees in the nation. The average city worker salary will reach about $68,850 for civilians and $93,800 for sworn police and fire by July.

The Daily News reviewed city workers' salaries using a database obtained from the City Controller's Office under the California Public Records Act.

Jack Kyser, chief economist with the nonprofit Los Angeles County Economic Development Corp., said warnings to the mayor went unheeded during labor negotiations so the city could appease unions.

"It's what you call governmental accounting, is the best way to characterize it," Kyser said. "You have warnings, and their response is, 'We're going to maintain the city work force at the same level, then pay more overtime and give rich raises."'

The approved union deal will cost the city about $273 million, and followed a slew of public employee pay raises.

Effective July 2006, police and firefighters received a three-year, 10 percent increase. Last year, the Engineers and Architects Association gained a three-year, 9 percent contract worth about $23 million. Three years ago, Department of Water and Power employees negotiated a five-year contract for 16.8 percent raises.

City officials defend the deal, saying the workers had forgone raises three years earlier.

"I don't think we could have done better, not if we wanted to keep (employees) productive and motivated, not if we wanted to keep the relationship with the coalition," said City Administrative Officer Karen Sisson.

Sisson said some citizen-funded fees would be needed because the cost of city services have simply increased.

Last week, the mayor said the magnitude of the economic slide wasn't apparent at the time of the deal.

"Nobody knew the extent of this economic crisis," Villaraigosa said.

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