Wednesday, June 14, 2017

Too late

Santa Ana officials say they’re working hard to plug major long-term budget shortfalls, as auditors warn the deficits will become harder to bridge in future years due to rising employee pension costs and a slowdown in revenue growth.
If the deficits continue and the city has to draw from rainy day funds, it could be pushed to the brink of bankruptcy a few years from now, like it was in 2011. City staff say they’re trying to find ways to save costs and grow revenues so they don’t have to draw from the reserves.
“We’re going to be working really, really hard to not touch [the reserves],” Deputy City Manager Robert Cortez said in an interview Monday.
They almost went under in 2011 and the problem is worse. They will be bankrupt in the downturn. 

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