West Covina’s deficit increases by half million

West Covina is bracing for a slight increase in its deficit, from $2.1 million to $2.6 million. The increase is in line with what we are seeing in cities across the San Gabriel Valley, the state and the nation, and are attributing largely to the decline in automobile sales and other retail sales.

Of course, that increase pales to what El Monte is experiencing. Last week, it was reported that El Monte’s deficit went from $400,000 to $4 million.

To make things worse, West Covina, like the rest of the cities in California, is holding its breath to see how the state is going to grapple with its ballooning deficit, which could reach $28 billion by 2010.

One thing West Covina has to offer compared with other cities is a healthy reserve, which for the time being is helping it deal with this deficit. But it’s not a permanent solution, City Manager Andrew Pasmant said.

The reserve is $40 million, $16 million which is available in cash today. The other $24 million is due to the city.

  • em member

    If only El Monte representatives & City Council had acted responsibly as West Covina.

    They have no business working for the public… actually they do, they are in the business of their selves.

    Now the community of El Monte has to pay the price of their stupidity and reckless actions.

  • Resident of El Monte., CA

    The city of El Monte mayor and city council did know better. They have known for seven years now. But ignored it. The city finance director showed them and told them at various council meetings on the cities negative budget. It is their responsibility to run and operate the cities operating cities budet, making sure it is running in the black.Unfortunetly they have failed the residents and businesses of the entire city.

  • Resident

    WC budget is in the hole $2.6M? We residents should be expecting either massive cuts in service or increased fees.

    Its kinda ironic considering the huge raise given to cops and firefighters just last year!

    Responsible? I don’t know….

  • Anonymous

    Why don’t you guys just give them a break.

  • SGV resident

    They have been getting breaks. Too many at the expense of city taxpayers!!!