Federal government shutdown would affect Los Angeles

4/6/2011, 5 p.m.

Villaraigosa, a Democrat, said one version of the House Republicans budget proposal would have a $560 million impact on the city.

The proposal Villaraigosa referred to cut $42 million in Workforce Investment Act funds, which the city uses for job training and to help small businesses avoid layoffs. According to data provided by the mayor's office, it would affect about 170,000 residents.

The proposal would also cut almost $50 million in block grants, which are used to provide social services to low-income residents of the city; would cut almost $15 million used to increase security at the Ports of Los Angeles and Long Beach; and nearly $100 million in homelessness prevention programs.

Boehner said last month that federal budget cuts will create jobs.

"To help our economy get back to creating jobs, we need to reduce uncertainty for small businesses in America and that cannot happen until we reverse the spending binge that has been going on in Washington,'' Boehner said March 15 in connection with the release of a study by Republicans on the Joint Economic Committee that showed cutting government spending significantly will support private sector job creation.

"As this new study shows, the spending binge in Washington has hurt job creation and cutting spending will reduce uncertainty and encourage businesses to make investments that create jobs.''

By Richie Duchon | City News Service