L.A. County finds $33 million in savings

Facing plummeting tax revenues, Los Angeles County officials said Thursday they have identified $33 million in budget savings and are preparing to make the first in a series of drastic cuts.Troy Anderson in the Daily News.

The moves were announced even as Gov. Arnold Schwarzenegger declared the state budget is "heading toward financial Armageddon," with a deficit that has grown to $41.8 billion over the next 18 months. That means local cities and counties may have to brace for even sharper cuts than they have made in recent weeks.

In an 18-page report to the Board of Supervisors, county Chief Executive Officer Bill Fujioka recommended the supervisors vote Tuesday to transfer $18 million from a reserve fund to the Department of Mental Health to preserve funding for psychiatric care at hospitals and other facilities.