Union talks under way in Long Beach

Long Beach officials and public unions expect to spend the next several days negotiating a compromise that solves the city's fiscal woes without a crippling tax increase or more layoffs, city leaders said.

Long Beach's proposed $88 million budget was aired publicly for the first time Tuesday before a tense crowd of about 500 residents at City Hall, including a strong contingent of union members who criticized the spending plan and job cuts.

The city, which announced 67 layoffs this week, is attempting to fix a projected $10.25 million deficit.

Several union members said the city should get more money out of property it leases and cut administrative salaries. The union and part-time employees are being unfairly targeted, said John Mooney, Long Beach's Civil Service Employees Association president.

"You cannot balance the budget on the backs of the lowest-paid workers in Long Beach," Mooney said.

City council members did not back off the city's call for union givebacks. The city needs $7 million in personnel savings -- $2.58 million of which will be achieved from the first round of layoffs -- to make budget, officials have said.

But council members added that they would consider the union's and other residents' suggestions -- 43 of them, according to councilman Len Torres -- and may propose revisions to the budget before the May 22 final hearing.

"At the end of the day, we're all neighbors," council member Michael Fagen said.

The city has proposed a 4.1 percent tax levy increase. Additionally, a temporary tax will be needed to pay down the deficit, officials have said.

Long Beach officials initially proposed a temporary 11.9 percent increase each year for three years to address the deficit. But city officials voted Tuesday to seek approval from the State Legislature to permit deficit financing, which would allow Long Beach to pay down the deficit over 10 years, resulting in a 5.28 percent tax increase each year.

The hikes would raise Long Beach taxes next year for the owner of an average home by about $263, to $2,738, officials said. The figure would be $2,904 without deficit financing, officials said.

Assemb. Harvey Weisenberg (D-Long Beach), who is sponsoring the deficit financing bill, said the measure should easily pass the State Legislature. Long Beach's final budget hearing, which will likely be followed by approval of the budget, is scheduled for 7 p.m. Tuesday at City Hall.