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(Image from article: "Wisconsin governor cancels layoffs after union vote")

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L.A. budget chief warns of bankruptcy without tax hikes, layoffs

Stagnant revenue and rising employee costs threaten City Hall with a $222-million shortfall, official says. A proposal to outsource ambulance services provokes anger from firefighters union. Los Angeles' top budget official raised the specter of bankruptcy Friday in a sweeping report that calls for new taxes, possible layoffs and the privatization of some city services.

Wisconsin governor cancels layoffs after union vote

Wisconsin Governor Scott Walker said on Friday he was canceling the layoff warning notices he sent late last week to public sector unions after lawmakers approved his proposal to restrict the collective bargaining rights of those unions.

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