LA Need not Sacrifice Public Safety

David Crane
Lecturer and Research Scholar at Stanford University and President of Govern for California

Today’s LA Times reports the city is looking at layoffs of police officers because of a budget shortfall. But as we explain here, LA could save nearly $400 million per year by eliminating a rich subsidy for retired city employees that was rendered redundant by subsidies provided by the federally-funded Affordable Care Act in 2010 and state-funded Middle Class Subsidies in 2019. Active LA employees and public safety should not be sacrificed to unnecessarily subsidize retired LA employees.

PS: Don’t worry about the state’s ability to finance its program. Unlike local revenues, state revenues in calendar 2020 are running ahead of calendar 2019.

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