L.A. deficit threatens jobs, credit rating

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LOS ANGELES (Reuters) – Los Angeles, the second-largest city in the United States, is confronting a mounting budget deficit that threatens to force thousands of job cuts, deplete its fiscal reserve and further damage its credit rating.

The $212 million budget shortfall, projected to more than double next year, is attributed mainly to plunging tax revenue blamed on the region’s sagging economy, falling property values and a 15 percent jobless rate — one of the highest of any major U.S. city.

Full story: L.A. budget crisis threatens jobs, credit rating–Reuters