1. DEMAND ACCOUNTABILITY
2. GET MORE EFFICIENT
3. FOCUS ON COLLECTIONS AND NEW REVENUES
4. REFORM CITY CONTRACTING
5. BUY IN L.A.
6. ENCOURAGE BUSINESS AND ECONOMIC DEVELOPMENT
7. PRIORITIZE
8. PLAN & INVEST
9. PUT CITY ASSETS TO WORK
10. DEVELOP OUR HUMAN CAPITAL
• THE JOB OF THE CONTROLLER - The Los Angeles City Controller is the chief accountant and auditor for the City. As the watchdog for the City, the office of the Controller is charged with ensuring all officials, departments and commissions operate with efficiency and competency. It is the job of Controller to: (a) Increase government efficiency, (b) Conduct performance & financial audits of all city departments, offices, bureaus & programs, and (c) Maintain all financial records and monitor all expenditures, including city payroll. (Click here for a full list of the duties and responsibilities of the Controller in the City Charter).
• MY ACTION PLAN - L.A. needs a financial action plan to repair, revive, and re-imagine this great City. I know what the job of Controller demands, I understand the finances of the City, and I have the experience in and out of City Hall to hit the ground running. And so, I offer my 10-Point Dollars & Sense Plan for L.A.:
1. DEMAND ACCOUNTABILITY
Having served as Chair of the City of L.A.’s specially created Commission on Revenue Efficiency (C.O.R.E.), the question my fellow commissioners and I kept asking was: “With whom does the buck stop?” Many City officials and department heads seem ready to claim credit for someone else’s accomplishments, but all too frequently point fingers at each other when it comes time for accountability.
There must be a public hearing on every Controller audit – and city officials who fail to act on waste, fraud and abuse have to be called to account. Conversely, we should thank and encourage exceptional and innovative work. And, our City’s budgeting process should be restructured to incentivize better performance by every office of the City. Start holding everyone accountable and watch what happens.
2. GET MORE EFFICIENT
As President of the City of L.A.’s Quality & Productivity Commission (QPC) I see the good, the bad, and the ugly as the City is forced to do more with less. Perhaps the silver lining of our current economy is that we’re forced to re-think how things have been done. The QPC has identified projects that can save the City hundreds of millions of dollars. And our C.O.R.E. recently completed a survey of more than 20 City Departments and offices – asking them for their top money-saving and money-making ideas. We got more than 100 good ideas.
Each day, I discover ways the City can deliver better services more efficiently. This isn’t brain surgery – much of it is common sense. And, as your next Controller, I will thoroughly examine the efficiency of each and every City department – and offer not just audit results – but a workable and productive action plan.
3. FOCUS ON COLLECTIONS AND NEW REVENUES
I firmly believe the answer to the City’s financial problems is NOT more taxes, more fees, more fines!
When the Commission on Revenue Efficiency issued our Blueprint for Reform of L.A. City Collections we revealed some staggering numbers: 76.6% of the City’s $541.1 million in reported non-tax receivables were more than 120 days past due, with 42.5% more than 2 years past due – and now mostly uncollectible. Among C.O.R.E.’s sixty five specific recommendations are taking the many “phantom receivables” off the books, immediately establishing and appointing an Inspector General for Revenue and Collections, centralizing collections, making it easier to pay the City and selling off some of our old debt while it’s still worth something.
The City has taken some action on some of our recommendations; as Controller, I’ll make sure all the recommendations are implemented. And, I’ll work with departments to generate new revenues creatively – without socking it to residents and businesses.
4. REFORM CITY CONTRACTING – STOP RUNAWAY CONTRACTS
L.A.’s Harbor Dept. went nearly $100 million over budget on six recent construction projects. Buried on page 81 of an obscure July 2011 Report are the ugly facts about wild cost overruns of 986% for a parking and landscaping project, 793% for a new police station and 571% for a cruise ship baggage handling facility. For now, it’s business as usual.
L.A. has many contracts that are poorly written and against the City’s interests – like contracts that not only reimburse contractors for their expenses, but do so with a markup. That’s a perverse incentive for contractors to spend more so they can get reimbursed more. As Controller, I’ll have a contract division that looks at City contracts – and whether or not they make sense. Contracts for goods and services we don’t need, or those that are over-priced or not in the best interests of the City will be brought to light – so we can end mis-spending.
5. BUY IN L.A.
The City spends billions of dollars annually on purchases of every type of good and service imaginable. City Hall spends nearly 90% of its billions of dollars in annual purchases on businesses out of L.A. It’s a foolish waste of tax dollars that could be bolstering local jobs, businesses and revenues. L.A.’s Commission on Revenue Efficiency, which I’ve chaired, discovered $60 million in City cars purchased over just six-months – and not one car was bought in L.A. The term for this kind of procurement is simple: financial suicide.
We shouldn’t donate our sales tax revenues to other cities. As Controller, I’ll work with every department to make sure we do all we can to help L.A. businesses and L.A. jobs. And, I’ll work with the School District, L.A. Metro and the County to do the same.
6. ENCOURAGE BUSINESS & ECONOMIC DEVELOPMENT
How many times have we heard about the need to make L.A. more business friendly? It’s one thing to require every L.A. business to have a license issued by the Office of Finance. But do we need another 57 separate classes of business permits issued by the LAPD for things like bowling alleys, dancing academies, skating rinks and hill climbing?
A good start to becoming more business friendly would be to simplify business licensing and reform the City’s grossly unfair gross receipts tax. And, I’m committed to seeing any redevelopment money spent wisely, fairly and to really help the communities that need it the most.
7. PRIORITIZE
L.A. City government must learn to prioritize and focus on core services. We spend millions of dollars on all sorts of projects that are awfully nice – but not necessary during these times of more limited resources. You pay your rent and utilities and grocery bills first. Only after covering the basics and saving a bit for the future can you think about buying lots of extras.
This will involve tough choices. Do we, for example, need certain duplicative City and County departments? Should we consider letting some City assets be sold or leased? Who should and shouldn’t get certain breaks and incentives from the City? As your City Controller, I’ll have an office of economic analysis to ask the tough questions and help get our priorities straight.
8. PLAN & INVEST
Planning: L.A.’s budget can’t keep up with the burgeoning costs of current operations – not to mention pensions, healthcare costs for current employees and retirees, and much needed infrastructure repairs and replacements. We must and we can, however, cut cost, find new revenues and re-prioritize. It won’t be easy or painless, but better to plan now than just wait for things to get worse.
Investing: In 2010, the U.S. government awarded L.A. $600 million in stimulus funding through the American Recovery and Reinvestment Act. What did we do with the money? According to a report from the Controller, the Dept. of Public Work’s received more than $70 million — but created or retained just 45 jobs. (The department was supposed to create 238 jobs). L.A.’s Department of Transportation was awarded $40 million – and created 9 jobs.
What would you do with that kind of money? I’m willing to bet that just about any Angeleno could have invested the stimulus money we received in a better way. As Controller, I’m committed to getting us on the course of wise and real planning and investment.
9. PUT CITY ASSETS TO WORK
Bet you didn’t know that the City of L.A. owns two asphalt plants? We have excess capacity we could be selling to other cities as a way to cover our own overhead. The plants are among myriad assets the City has that need to be put to work. The City also owns lots of real property and intellectual property that can be marketed, licensed, rented, joint-ventured, etc. Giving City departments the chance to retain some of the revenues they generate by being more entrepreneurial would be a good start. So would creating an office of entrepreneurial and joint-venture initiatives in the City. With my experience in business and as your next Controller, I’ll see that this happens.
10. DEVELOP OUR HUMAN CAPITAL
Our city has some of the most talented, educated, and hard-working people anywhere. There are nearly unlimited opportunities to encourage new business startups and expansions, high tech, biotech, research and development, public/private partnerships with universities. and more. We’re the entertainment capital of the world; nobody can beat our weather, beaches, mountains, and the sheer natural beauty of our City of Angeles.
As Controller, I’ll see that we expand internship, leadership development and mentoring opportunities in our city. I’ll create forward thinking advisory panels that bring the greatest minds together to benefit our city. And my door will always be open to new and good ideas.
You’re invited to contribute your own ideas. Call or e-mail me at any time.