City near agreement with unions

Los Angeles city officials said Wednesday they are close to an agreement with city unions that would cover nearly half of the $530 million shortfall the city is facing this year. Daily News.

The City Council also approved plans Wednesday to borrow $1.1 billion against future tax revenue - the largest it has ever borrowed in this way - to cover short-term costs.

The labor agreement would call for workers covered by the Coalition of City Unions to forego a cost of living raise for up to two years and increase their contributions to the pension system to pay for an early retirement program.