by Dave Blount | April 12, 2010 2:45 pm
A property tax take even larger than was expected has given Los Angeles a brief reprieve, but bankruptcy still looms in the near future of the country’s second largest city as a direct result of the environmentally correct but economically insane decrees of California’s moonbat rulers.
Los Angeles Department of Water & Power has been withholding a desperately needed $73.5 million payment to the city in lieu of a rate hike that it has been denied. Here’s why the nation’s largest utility has to raise its rates:
Utility officials say they need those higher rates to help cover the costs of investing in renewable energy, such as wind and solar, that are mandated by state and municipal laws.
Apparently, the petty tyrants in charge of turning the Golden State into a second Rustbelt didn’t realize that there is a very large price to be paid for imposing inefficient means to generate electricity.
No problem; this is the era of Hopey Change. Big Government can just seize the money. Except…
David Freeman, the utility’s acting general manager, went further than earlier statements that it would withhold the money, telling the controller in a letter, “There is no surplus money to transfer at this time.” That prompted [Los Angeles City Controller Wendy] Greuel [great name for a bureaucrat] to order an immediate audit of the agency to confirm that the funds weren’t available, a move the utility said it welcomes.
What was that Margaret Thatcher said about socialists eventually running out of other people’s money?
Fortunately La-La Land bureauweenies now realize that sound governance cannot be sacrificed to their greener-than-thou political posturing. The absurd green energy mandates will be repealed at once — just kidding. Characteristically, liberals are reacting to this self-imposed crisis by asking themselves, What would Hugo Chavez do?
City Councilman Greig Smith moved to put a measure on next March’s ballot that would ask voters to allow it to shift control of the utility — and its massive budget — under the auspices of the council.
Once the bureaucrats have seized direct control, the numbers don’t have to add up anymore — at least, not until California’s taxpayers run out of money too. Then comes the federal bailout.
On a tip from Byron. Cross-posted at Moonbattery.
Source URL: https://rightwingnews.com/economy/ecomoonbattery-threatens-los-angeles-with-insolvency/
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