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Week in review

June 27, 2009

CITY HALL

After months of wrangling over a $9.7-million deficit, the City Council voted unanimously Tuesday to adopt a balanced $808-million budget that includes across-the-board cuts of up to 7.5% that will likely mean pink slips for three sworn police officers.

Nearly all of the cuts came out of the $164.8-million general fund and included millions in savings from wage concessions, a hiring freeze, the elimination or downgrading of roughly 30 positions and a restructuring of the way the city pays for street and capital improvements.

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 Outdoor watering will likely be limited to three days a week under a revised mandatory water conservation proposal that gained traction Tuesday with the City Council.

Mandatory 10% conservation, which still must be approved by the council next week, is recommended by the utility to help it stay within a reduced allotment from the Metropolitan Water District of California, which supplies up to 70% of Glendale’s water.

POLITICS

California’s financial fate continued its tumble into uncertainty this week as lawmakers failed to agree on a solution for a projected $24.3-billion deficit, despite warnings that the state will soon have to pay for some of its obligations using IOUs.

Controller John Chiang on Wednesday warned that historic drop-offs in tax revenues have put California close to insolvency as it tries to pay for billions in services for which funds are not available.

A continued impasse in the Legislature, Chiang said, will force him to begin issuing IOUs July 2 in the place of payments for local governments, private contractors, state vendors, income and corporate tax refunds, and other operations, including salaries for legislators.

BUSINESS

The growing popularity of out-of-state film productions has emerged as the major contributor to the area’s rising unemployment rates, which jumped toward 10% in May after a brief decline in April, experts said.

Unemployment rates rose from 9.4% to 9.9% in Glendale and from 8.7% to 9.2% in Burbank, matching the figures logged in March, according to a report released Friday by the California Economic Development Department.

EDUCATION

The Glendale Unified School District Board of Education adopted a new budget Tuesday, but officials said the move will not solve the district’s problems as they anticipate the state’s continuing budget crisis to force millions in more funding reductions.

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