City official says LA's fiscal crisis demands 'swift action'

The chief administrative officer for the City of Los Angeles has issued a bleak financial report that calls for the elimination of at least a thousand positions and the elimination of some city departments.

"The enormity of our current fiscal crisis forces the city to take swift action now and layout a financial plan for the future," said Santana.

CAO Miguel Santana says the city's tax receipts are now projected to be $110 million below prior estimates, for a total drop of $186 million.

"We are seeing distress in almost every revenue category including property, sales, utility, business, and hotel taxes. In the recession of the early 1990s, it took five years for the major taxes to return to the pre-recession level and it took nine years for the city's most economy-sensitive revenue, the sales tax, to fully recover," Santana said.