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.