(Bloomberg) -- Los Angeles Mayor Eric Garcetti declared a state of fiscal emergency and said he would seek to enact deep cuts as part of his fiscal 2021 budget as the coronavirus hurts state and city finances around the U.S.
The city, which is the second-largest in the U.S., is the latest to seek major reductions as virus-related shutdowns across the country hurt revenue sources like sales taxes. Garcetti's budget would cut spending by about $230 million, with about $80 million of that from furloughing about 15,000 civilian workers.
Under the proposal, the city would miss its target for a minimum reserve fund balance of 5% or more of general fund revenue for the first time in seven years due to virus-related spending and revenue losses. Los Angeles is seeking to shore up the reserve fund by making a transfer to it, Garcetti's office said in a letter to the city council.
The city is projecting four years of structural deficits that may require further cuts, including a $272 million gap in 2021-22, according to the letter.
Garcetti said in a speech on Sunday that the economic fallout from the pandemic has been far worse than the 2008-2009 financial crisis. “From a fiscal perspective, this is the worst it's ever been,” he said in an emotional address.
Related: Los Angeles Mayor Says Virus Economic Fallout Worse Than ‘08
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