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County might tap into reserves in bad economy [UPDATED]

Los Angeles County supervisors are considering whether to transfer $34.1 million from one-time reserves to cover an upsurge in welfare and construction costs. They said they might have to cut services and workers next month if state leaders follow through on plans to defer health and social services payments.

The state controller is expected to delay $105.6 million in payments to Los Angeles County next month, and the governor has proposed deferring $1.4 billion in such payments in the six months that follow. "We do not have the cash flow to deal with this," L.A. County Chief Executive William T. Fujioka told supervisors this morning. "We would have to go on the market to borrow the money."

Supervisor Zev Yaroslavsky said borrowing was "not an option."

"How much are we going to have to pay in interest — if we can get a loan?" Yaroslavsky said, adding that tapping the reserves and borrowing are simply "deferring the inevitable."

"This is ridiculous," Yaroslavsky said. "The state deferring its responsibility so it can defer balancing the budget."

Supervisor Don Knabe, who chairs the board, questioned whether the county can transfer legal responsibility for welfare payments back to the state, or refuse to cover the state portion of payments.

Philip Browning, the county's director of public social services, said welfare rolls are growing more than expected, and any cutbacks would hurt the 145,000 low-income families the agency serves daily. 

"The impact will be very dramatic if it carries on more than a month," Browning said.

-- Molly Hennessy-Fiske

Updated at 12:25 p.m.: An earlier version of this post incorrectly reported that the supervisors had voted to approve the money transfer. The board was still debating the item.

 
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The Economic Downturn:

My fellow Humanbeings it's only temporary. Don't be scared. Scared is what the evil doers want you to be. This severe economic downturn was not unforeseen. Many of us tried to warn everyone that we could years ago. And we did our humble best to head it off, and limit it's destruction. But their were some very powerful, and Evil forces at play that limited our ability to completely stop this economic downturn before it happened.

Fear not my fellow humanbeings. Your future, and the future of the World is very BRIGHT! now. :-)

The World has continued to be blest with excellent leaders who have brilliantly handled the dangers, and complexity's of our geopolitical challenges. And with the help of the world, America has now elected a new President (President Barack Obama), and a government who stands ready to lock arms with the rest of the World's leadership in solidarity towards a better World for all.

President Obama's choice of Cabinet, and advisers has been nothing short of brilliant. And his performance has been excellent. I believe President Obama stands ready to do whatever he has to do to see the American people, and the World through this crisis.

So spend, but spend wisely. Trade with each other, but trade wisely. Live, work and enjoy the majesty, and miracle of your existence in the community of humankind. This is a great time to be alive. :-)

It is not an accident that humanity exist on a small blue planet tucked in the safest corner of the universe. A planet with a constant source of warmth and energy from the sun. A planet surrounded buy a forcefield we call an atmosphere. And an atmosphere that keeps in the things we need to survive, and keeps out most of the things that could harm us. :-)

It is not an accident that the mass and orbits of the planets, moons, asteroids, and other heavenly body's are perfectly aligned to harmlessly deflect the larger objects that could hurt us away by gravity. Deflecting danger into outer space. Or into the sun.

The sun still shines on us. And our future is GOOD! This economic downturn is just a little darkness before the dawn.

Things are going to be GREAT! That is what you have chosen. The new Renaissance has begun.

God bless all of us

Jacksmith --- Working Class :-)


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