County facing $1.8 billion catastrophe

The Los Angeles County government stands to lose a "catastrophic" $1.8 billion under Gov. Arnold Schwarzenegger's budget-balancing plan, officials said Wednesday. Troy Anderson in the Daily News.

In a report to the Board of Supervisors, CEO Bill Fujioka warned that the county could lose $1.5 billion in state revenues through June 30, 2010, plus an additional $302 million in property tax revenues the state may seek to borrow from the county.

That action could force the county to cut more than 380,000 people from the welfare rolls and make numerous other reductions in mental health, health and social service programs. The county would also lose $109 million earmarked to repair potholes and maintain infrastructure.