Compton is so deep in the red that a recent independent audit questioned whether it could continue to exist as a city.
The audit, conducted in April, found the city's general fund was running at a $14.6 million deficit for the last fiscal year and owed another $19.7 million in bills and liabilities. The city had a total of $3.1 million in shortfalls in other funds and had exhausted its reserves.
City Manager Willie Norfleet said Compton will be able to remain functional if it undergoes a major re-organization that would include cutting 100 jobs and perhaps even more.
Compton has 575 city employees. All of them have been sent layoff warning notices.
The Associated Press contributed to this report.
