LA Considers Tax Increases, Pension Changes

Despite years of raising fees, slashing the city workforce and cutting back on everything from swimming pools to sidewalk repairs, Los Angeles officials warn that the city's budget shortfall could top a quarter of a billion dollars next year without additional tax hikes and belt-tightening.

For months, analysts and elected officials have been signaling that both tax increases and an overhaul of the employee pension system will be needed to keep the city afloat.

On Tuesday, faced with the latest deficit forecasts, the City Council moved toward putting two tax increases on the March ballot and raising the retirement age for new employees, among other changes to the pension formula.

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