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Draft deal declares fiscal emergency for LA

Los Angeles Mayor Antonio Villaraigosa is seen talking at a press conference.

May 27, 2011 12:00:00 AM PDT
The Los Angeles city attorney's office will present an updated draft resolution declaring a fiscal emergency in the city.

It allows Mayor Antonio Villaraigosa continued authority to reduce work hours for city employees.

The draft resolution comes as the union, representing 4,100 clerical workers, agreed to forego pay hikes and contribute more to pension and health care costs. That allows Villaraigosa to reduce the mandatory furlough days for those clerical workers from 36 to 21.

It's not clear how much money the new agreement will save the city.

The deal still needs city council approval.

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