Layoffs, Budget | featured news

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.

Officials in Costa Mesa say they are just trying to solve a budget problem, but some see a political motive.

The mayor of Los Angeles has ordered the immediate layoff of 1,000 city employees to help to balance the city's budget.