Los Angeles City Council members voted Wednesday to give local businesses a leg up in winning city contracts.
Council members say the city should spend its money on businesses that hire people in L.A. The city of Los Angeles spends more than a billion dollars a year on contracts for supplies and services.
But the city conducts most of that business goes with out of town companies, says L.A. City Councilman Paul Krekorian. “Right now over 80 percent of it goes outside Los Angeles. It makes no sense to continue that kind of status quo at a time when unemployment is skyrocketing in the city. We should take every opportunity to keep that money here so taxpayers’ money is spent to create local jobs.”
Under the plan, businesses that pay local taxes and hire local workers would get an 8 percent boost when they bid on city contracts.