L.A. Council votes to study controversial cost-cutting package

Saying it had no choice in the face of persistent budget deficits, the Los Angeles City Council agreed Tuesday to examine a package of controversial cost-cutting proposals that one councilman likened to a “declaration of war” on city workers and business.

The action, suggested by Councilman Bernard C. Parks, directs City Administrator Miguel Santana to prepare reports on a number of areas where the city could reduce costs, including doing away with a shortened work week for police officers, deferring or eliminating proposed employee raises and abandoning efforts to reduce the business tax. The city currently faces a budget shortfall of $150 million to $160 million, according to Santana.

Parks said it makes sense to get a full analysis on each of 21 cost-cutting items to find out whether, if implemented, they would help reduce the city’s debt burden, fix chronic budget deficits and free up money to pave streets, fill potholes and restore services that have been slashed in recent years.

“We’re at a point now were we have to put everything on the table and consider every idea,’’ Parks said. “I can guarantee that all these things won’t be solved and discussed at Year 1.”

Although city revenues are slowly increasing, expenditures continue to outpace them, creating continuing deficits, Santana told the council in a budget update. Rising pension costs, promised raises and increasing healthcare costs are driving much of the structural deficit, he said.

Councilman Richard Alarcon called Parks’ motion an ambush made when union representatives and business leaders were not in chambers to debate them.

“This is essentially a declaration of war on so many entities we have worked with to achieve unity,” he said. “Let’s hold this and let the public know about this motion so they can be heard.”

But the council refused to delay the action, voting 9 to 1 in favor of having a full analysis. Alarcon was the sole “no” vote.

The council’s action comes during the politically charged mayor’s race, in which both Councilman Eric Garcetti and City Controller Wendy Greuel have accused the other of being beholden to labor and special interests. (Garcetti was not present for the council vote.) It also comes two days before Mickey Kantor, former secretary of Commerce in the Clinton administration, is expected to announce that he is convening a private panel to examine ways to fix the city’s continuing budget woes.

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Twitter: @csaillant2

catherine.saillant@latimes.com