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Red Ink To Stain LA Plan To Delay $100M In OT Pay, Wage Hikes

LOS ANGELES (CBS) — City officials continued Tuesday to take flack for keeping Los Angeles in the black.

KNX 1070's Pete Demetriou reports that even despite the controversial measures, there are concerns the city may face a tide of red ink.


Mayor Antonio Villaraigosa and the City Council have recently agreed to delay paying police overtime, unused sick time and deferred contracted wage hikes for workers' costs totaling in excess of $100 million.

The cost-cutting measures have recently drawn criticism from mayoral contenders like Austin Buetner along with City Hall watchdogs and bloggers.

An analysis conducted by the Los Angeles Times indicated that the city could continue to defer payments to police officers and others until Villaraigosa leaves office in 2013.

But the report also warned the new mayor would be hit with worker pay hikes totaling 7.25 percent by 2014.

The city could also face another potential cash flow shortage if police officers opt to accept cash payments for overtime pay ahead of the city's plans to reduce overtime for police employees, according to the report.

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