Latest news with #TrumpSlump
Yahoo
3 days ago
- Business
- Yahoo
The real reasons Las Vegas is losing visitors
Las Vegas is experiencing a notable downturn in tourism, with hotel occupancy, visitor numbers and spending all slipping. Industry data points to several key reasons behind the shift, including rising costs, fewer international travellers, and broader economic uncertainties. Drop in international visitors and hotel occupancy According to the Las Vegas Convention and Visitors Authority, hotel occupancy dropped to just 66.7% in early July—a sharp fall from the previous year—and international visitor numbers plunged by more than 13% in June alone. Domestic arrivals also fell by around 6.5%, and traffic through Harry Reid International Airport declined nearly 4% overall. Soaring prices and hidden resort fees Tourists are increasingly deterred by the high cost of visiting. Reports highlight eye-watering prices such as $33 bagels and $26 bottles of water, onerous parking and resort fees, and surprise charges for early check-ins and basic amenities. One visitor remarked people felt they were 'getting taken for a ride' as nickel-and-dimed pricing became widespread. Economic anxiety and geopolitical factors Rising inflation, economic instability and geopolitical tensions are impacting consumer confidence. Experts link this to what's been dubbed the 'Trump slump' in tourism, marked by tariffs, strained international relations, and increased visa fees for visitors to the US. Senator Jacky Rosen also warned of an 8% drop in international visits, partially blamed on travel deterrents like aggressive immigration policies. Why is travel to Las Vegas dropping? The slide in Las Vegas tourism is tied to multiple factors. The sharp decrease in overseas visitors—who typically stay longer and spend more—is a major blow. Convention traffic remains strong, up about 10%, but leisure travel has softened, with weekday hotel occupancy dipping below trend. This suggests that while business visitors help, they can't fully compensate for falling vacation travel. How pricing is pushing visitors away As Las Vegas pivots towards a luxury model with high-end entertainment and premium resort offerings, many mid-range travellers are being left behind. Massive mark-ups on everyday items and hidden fees have led to visitor backlash. One analyst called it a 'gouge,' resonating with comments from tourists fed up with resort extractions before even entering the casino floor. Economic headwinds and policy hurdles Beyond prices, macroeconomic concerns are curbing travel budgets. Economists forecast a slow contraction in gaming revenue as discretionary income tightens. Meanwhile, visa integrity fees of $250 for non‑visa waiver visitors and global travel restrictions have discouraged inbound tourism. Ultimately, Las Vegas is at a crossroads. The iconic city is losing some of its broad appeal due to high costs and international travel hurdles. Without adjustments to pricing strategies and efforts to re–engage mid‑market and overseas visitors, the decline in tourism could deepen—even if larger-scale conventions remain robust. "The real reasons Las Vegas is losing visitors" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Gulf Insider
09-07-2025
- Business
- Gulf Insider
Oil Markets Are Tighter Than They Look
Diesel spreads and refinery margins are no longer reliable on their own for gauging oil demand, as extreme weather and supply chain issues distort short-term signals. Refinery closures in the West and lagging new capacity in Asia are creating regional imbalances, with physical tightness building despite weak headline indicators. China's slowing demand and India's rise as a refining hub, combined with 'missing barrels' and potential new US sanctions, could drive unexpected bullish shifts in oil markets The global oil market has entered a period of increasing volatility, with unpredictable supply, deceptive demand signals, and factors such as geopolitical uncertainty and souring economic sentiment all tugging at prices. Crude flat prices have been somewhat volatile but have on the whole suffered over the last month or two. Diesel timespreads (or 'spreads'), which measure the physical need either to store barrels or release barrels from storage, have historically been a reliable indicator of broader market trends and of economic growth. Recent disruptions, however, suggest that traders must look beyond even this proxy to understand the evolving landscape fully. What's more, the increasing complexity of supply chains, the rise of alternative energy sources, and shifting regulatory frameworks further complicate market assessments, making a more comprehensive approach to analysis essential. Over the past few months, diesel spreads probably failed as a reliable indicator of medium-term oil demand. A major driver of this distortion was extreme weather conditions in Europe and North America. Cold spells, more frequent and severe than in previous years, led to increased heating fuel demand and logistical disruptions. This distorted pricing signals, creating regional shortages and surpluses that do not necessarily align with average conditions in the market expected through the year. Furthermore, ongoing supply chain constraints and transportation inefficiencies have exacerbated these distortions, making it increasingly difficult to predict market trends using conventional indicators alone. Recent market indicators illustrate this complexity. The March ICE Gas oil contract expired at an exceptionally high level of 'backwardation' at roughly +$20 per tonne, suggesting significant tightness in the physical market. This contradicts other market movements, such as the so-called 'Trump Slump,' which drove crude flat prices down substantially over parts of Q1, alongside US equities (crude has since made some recovery on supply concerns brought about by US sanctions on Iran and Venezuela). Diesel cracks, a measure of the economics of refining crude into diesel, weakened from $21 per barrel to below $17 since mid-February, leading some to conclude that the market is beginning to reflect an oversupply issue. However, a deeper analysis of current spreads, particularly post-winter, as well as refinery economics, suggests that fundamentals may not be as bearish as headline numbers imply. While diesel spreads this winter likely overestimated medium-term oil demand and the broader state of global economic growth, they still remain a more reliable indicator than the crude flat price, particularly with cold weather impacts fading. In fact crude oil, diesel, and other fuels markets are 'backwardated', which signals little incentive or need to store barrels. A contango structure, which incentivises storage, has not been observed for an extended period, reinforcing the view that immediate supply/demand conditions are not overly loose. This divergence between futures market pricing and physical market pricing highlights the importance of a multi-layered approach to analysis. Refinery margins provide another critical signal. Despite broader economic concerns, margins remain historically healthy, even after a sentiment-driven sell-off in diesel cracks specifically (since diesel demand in theory suffers the most during a recession). High sulphur fuel oil and naphtha cracks are also strong, indicating a need for maintaining high refinery operating rates. This comes at a time when the refining sector is already facing a significant reduction in capacity and with little evidence thus far of a demand collapse implied by markets. Approximately 400,000 barrels per day of refining capacity will be lost in Europe due to upcoming closures, including Grangemouth and several German refineries. In the US, LyondellBasell's Houston refinery has already shut down, and further closures are possible later in the year on the US West Coast. One of the critical unknowns in the months ahead is the extent to which refinery closures are already priced into the market. While traders actively factor in expected changes, the full impact of these closures may not be realised until inventories begin to decline. Much attention has been paid to the new Dangote refinery in Nigeria, which has almost fully ramped up already. This additional capacity should be offset by losses elsewhere in the Western Hemisphere. A key signal to watch will be the arbitrage movement of Middle Eastern & Indian barrels to Europe. Over the past few months, Europe has not had to rely heavily on Middle Eastern imports. However, if these arbitrage routes reopen consistently (via prices), that will be indication of tightening conditions and an increasing need for external supply. Refinery closures often have a lagging impact, as inventories act as a buffer in the initial stages. However, supply constraints will likely become more apparent as stocks deplete, particularly in distillate markets. Supply chains may also be whip-sawed by renewed tensions in the Red Sea. The trade route through the Suez Canal, closed off due to Houthi attacks for some time now, had looked likely to reopen more completely in recent weeks, drastically cutting diesel transit times to Europe. But recent renewed tensions look likely to cut the nascent recovery short. With steady demand at least for now, the Western Hemisphere's refining sector is positioned for a period of moderate bullishness. Strong margins should incentivise refiners to maximise throughput where possible, but this will not be enough to fully offset the lost capacity. As a result, regional imbalances are likely to persist, contributing to localised price volatility and disruptions in supply chains. All this is also ultimately bullish for the outright price of oil. What is more, new refining capacity in China is unlikely to alleviate global supply constraints significantly. Many of the country's additions are focused on petrochemical feedstock production rather than diesel and gasoline output. Furthermore, China's long-term strategy involves rationalising its refining sector, particularly in Shandong, by phasing out older units. Consequently, while new capacity is coming online, its net contribution to the global supply of road fuels will be less than expected. India is another country to watch here and it continues to expand its refining footprint, positioning itself as a growing force in the global downstream market. However, the extent to which Indian refining capacity can offset declines in other regions remains uncertain, and some domestic supply will go to servicing domestic growth in oil demand – India is one of the primary sources of global growth here. The shifting dynamics of Chinese oil demand growth remain a significant uncertainty for global markets. While official statistics are often unreliable, crude import data provides a clearer picture of underlying trends. In 2024, China experienced a notable slowdown in oil imports, exerting downward pressure on the crude market. Given China's dominant position in global seaborne crude imports, a decline of 500,000 to one million barrels per day has significant market implications, however the market managed to absorb these losses reasonably well. At the end of 2024, Chinese agencies forecasted another substantial decline in domestic gasoil demand for 2025. This raises two possible scenarios: China will reduce crude imports again, creating a bearish environment for crude prices, or it will increase refined product exports, weighing on refining margins elsewhere. While neither scenario has fully materialised yet, this remains a key factor to watch for global markets, and also with respect to ongoing stimulus efforts from the Chinese government. One persistent challenge in oil market analysis is the so-called 'missing barrel' phenomenon, the discrepancy between reported supply figures and observable market conditions. Year to date, the inventory picture looks substantially tighter than official supply vs demand statistics and forecasts suggest. This discrepancy complicates market outlooks, as some traders base decisions on official data while others rely on observed physical conditions. The timespread structure is the most reliable way to cut through this noise. A highly backwardated market reflects more genuine tightness in physical supply, regardless of what balance sheets suggest. With this in mind, any successful ratcheting up of efforts to cut down on oil exports from Venezuela and Iran as part of US foreign policy would be a bullish black swan scenario for the market this year. Macroeconomic developments, particularly trade policies and potential tariff escalations, which could alter global end-user demand patterns, will eventually shape the market, but over the course of the next few quarters. While economic concerns continue to dominate sentiment, supply-side factors, especially refining capacity reductions, will likely support product prices in the near term. In this environment, traders must go beyond traditional indicators and focus on real-time physical market conditions. With structural tightness persisting in multiple product markets, the broader narrative of weakening oil demand may not hold up for long under closer scrutiny.
Politico
02-06-2025
- Business
- Politico
Pritzker's budget blame game: Trump
Presented by Happy June, Illinois. And congrats to the state legislators who powered through the weekend. TOP TALKER BUDGET BLUES: Gov. JB Pritzker praised state lawmakers Sunday morning for passing a balanced state budget and blamed a 'Trump Slump' for Illinois seeing $500 million in reduced revenues. 'Donald Trump's incomprehensible tariff policies have put a tax on our working families and dampened the nation's economic outlook, the Trump Slump is affecting every state, and the chaos and uncertainty of the Republicans proposed cuts to health care and education and jobs have made budgeting well harder than ever before,' Pritzker told reporters in a press briefing alongside Lt. Gov. Juliana Stratton and state Senate President Don Harmon. Illinois House Speaker Emanuel 'Chris' Welch had a family commitment. Pritzker said the 'chaos' in D.C. is affecting other states, too. He pointed to Iowa and Indiana that once 'were bragging about their fiscal condition while laughing at ours. My, how times have changed.' We noted that last weel. The governor touted Illinois having nine credit upgrades and seven balanced budgets while 'Indiana's 10 percent budget deficit and Iowa's 5 percent budget deficit caused them to cut public health and higher education and dip into their rainy day fund.' It's sinful: In the end, the Democratic-led Illinois General Assembly approved a $55.2 billion spending plan and a $55.3 billion revenue package for the next fiscal year that also included a good share of sin taxes from online sports betting, to tobacco products, nicotine pouches and e-cigarettes. There's a lot that didn't get done: The transit bill to prevent a 'financial cliff' in the transportation industry failed to pass — there's talk now of returning to Springfield to address the problem. An energy bill that would protect the state's power grid didn't pass. And an omnibus bill to improve elections didn't pass. And a proposal to overhaul the state's Tier 2 pension system (which affects public employees hired on or after Jan. 1, 2011) didn't make it over the finish line, either (though lawmakers did approve $75 million for a reserve fund for the program). Funding that was approved: $500 million for economic development and investment in site readiness grants to local governments for economic development; $200 million for early childhood workforce compensation grants and a $175 million increase for the Child Care Assistance Program to support 150,000 children. Here's a budget breakdown from the governor's office. By the numbers: 'They passed 432 bills during their five-month spring session, though perhaps none more important than the state's budget for the fiscal year that begins July 1. The nearly 3,400-page spending plan and other budget-related bills passed just minutes before midnight on Saturday — roughly 30 hours after the measure was introduced,' reports Brenden Moore in The Pantagraph. There was some careful praise about getting over the finish line: Jack Lavin, head of the Chicagoland Chamber of Commerce, said his organization is 'pleased' that lawmakers passed an economic development package, 'which included incentives for manufacturers, capital investment programs and business recruitment.' Republicans could only roll their eyes: State Sen. Terri Bryant echoed her GOP colleagues, calling the budget 'irresponsible, unsustainable and wrong for Illinois.' Republicans also criticized Democrats for 'ramming' the budget through in the last hours of the session. RELATED Among bills going to governor's desk: A measure designed to rein in the practices of pharmacy benefits managers, or PBMs, law-enforcement background checks and legal help for immigrants, via the Tribune Chicago public transit in limbo after state lawmakers fail to fill nearly $1B budget gap, by the Block Club's Charles Thrush and Manny Ramos Illinois Senate leaves without taking a vote on plan to let terminally ill people end their own lives, by the Sun-Times' George Wiebe Bears' stadium efforts run out of time in Springfield but state Rep. Mary Beth Canty says deal was close and talks will continue, by the Tribune's Olivia Olander It's the latest tough snap for Bears president Kevin Warren, by the Sun-Times' Mitchell Armentrout and George Wiebe For mentally ill people facing low-level charges, lawmakers take steps to get them care, not prosecution, by the Sun-Times' Frank Main and Stephanie Zimmermann Three-point seat belts to be required on new school buses in Illinois, by the Daily Herald's Russell Lissau If you are Don Harmon, Playbook would like to hear from you! Email: skapos@ WHERE'S JB No official public events WHERE's BRANDON At Daley Plaza at 9 a.m. for the annual Pride Flag Raising Ceremony — At the Southwest Pumping Station for a Chicago Grand Prairie Water Commission water project announcement Where's Toni At Daley Plaza at 9 a.m. for the annual Pride Flag Raising Ceremony Have a tip, suggestion, birthday, new job or a complaint? Email skapos@ BUSINESS OF POLITICS — WHAT's NEXT: Now that the legislative session has wrapped up, watch for the governor to pivot his attention to the upcoming federal hearing in Washington, D.C., on June 12 about Illinois' sanctuary status. After that, Pritzker is expected to announce whether he'll seek a third term, timing it, likely, with the Cook County Democratic Party slating on July 17 and 18. — Endorsement: State Sen. Robert Peters has been endorsed in his bid for Congress in the 2nd District by the Amalgamated Transit Union, which includes Chicago Locals 241 and 308. — Dueling rallies at Huntley's Trump & Truth Store as owner vows to stay open, by the Tribune's Shanzeh Ahmad THE STATEWIDES — Feds say Michael Madigan should get 12½ years in prison: 'Madigan wielded the speaker's gavel in Springfield for 36 years. Now he's bracing to learn his fate June 13, when he's due to be sentenced by U.S. District Judge John Blakey. The hearing comes four months after a jury convicted Madigan in an historic verdict,' by the Sun-Times' Jon Seidel. — A Madigan elegy: Mac Hoffmann, who was a staff attorney under former Speaker Madigan from 2015 to 2016, is now a singer-songwriter based in Minneapolis. He's out with an acoustic piece about Madigan titled, 'The Fall of the Velvet Hammer.' In a note to Playbook, Hofmann says, 'It's not a takedown. It's a reckoning—a meditation on what it meant to serve a system that no longer made sense. The timing aligns with Madigan's sentencing, but the story behind it has been unfolding for nearly a decade.' Sample lyric: 'The cleanest guy in the Capitol is the janitor mopping the floor.' Listen here. — Springfield's historic Myers Building officially sold, by the State Journal-Register's Claire Grant — Fake IDs now as good as the real thing — and essential to Chicago's college social scene, by the Sun-Times' Mary Norkol TAKING NAMES — HATS OFF: Cook County Commissioner Donna Miller's annual Hats Off to South Suburban Women Luncheon drew a crowd of 300 Sunday at Ravisloe Country Club. Spotted: Congresswoman Robin Kelly, former Mayor Lori Lightfoot, Chicago Ald. Stephanie Coleman, Sauk Village Mayor Marva Campbell-Pruitt, Richton Park Mayor Rick Reinbold, Homewood Village Trustee Vivian Harris-Jones, Homewood Village Clerk Nakina Flores, East Hazel Crest Trustee Maureen Moe Forté, Appellate Judge Sharon Johnson, Rich Township Clerk Sugar Al-Amin, Matteson Trustee Carolyn Palmer, Calumet City Ald. Monet Forte Wilson, District Police Commander Karla Johnson and school Superintendent Blondean Davis. — Dulana Reese-Campbell has been elected board president of the Young Democrats of Chicago. Reese-Campbell is chief of staff to state Rep. Kam Buckner. Other officers: Jackie Duarte, Lindy Girman, Tyler Harding, Taylor Coward, Evelyn Wilder, Arthur Dennis, George Haines and Brian Frederick. Reader Digest We asked about impactful protest movements. Michael Churchill: 'Vietnam War protests.' Michael Burton: 'The eight-hour day movement, centered in Chicago in the 1880s, gave us the weekend by reducing the typical workweek from six days and 70+ hours to our current 40-hour work week.' Ted Cox: 'Occupy Wall Street, #MeToo and Black Lives Matter. They may not have the momentum right now, but they're not done by any means.' Sean Duffy: 'The 1917 February Revolution in Russia forced Czar Nicholas II to abdicate his throne and ended 300 years of rule by the Romanov dynasty.' Robert Fioretti: ' April 15, 1970, when an anti-war moratorium demonstration on tax day was held at Daley Plaza. More than 40,000 attended, and many there are still protesting today.' Daniel Goldwin: 'Free Soviet Jewry protest movement.' Charles Keller: 'On Oct. 31, 1517, Luther sent a letter with the 95 Theses to the Archbishop of Mainz, marking the beginning of the Protestant Reformation.' Jim Lyons: 'The anti-war movement at the 1968 Democratic National Convention.' James Scalzitti: 'ACT-UP.' Emily Spangler: 'The Stonewall Movement. Stonewall is one of many reasons we LGBT people are recognized and protected in society.' NEXT QUESTION: What's a national holiday you'd like to see created? KEEPING UP WITH THE DELEGATION — China happy with restrictions on its students, Krishnamoorthi says: 'They want these people back,' said U.S. Senate candidate and Congressman Raja Krishnamoorthi on 'Face the Nation.' 'They want the scientists and the entrepreneurs and the engineers who can come and help their economy. And so we are probably helping them, as well as other countries, more than helping ourselves with this policy.' THE NATIONAL TAKE — The 'Medicaid moderates' are the senators to watch on the megabill, by POLITICO's Jordain Carney — Liz Magill, the first casualty in the war against elite universities, by POLITICO's Evan Mandery — DHS removes list of 'sanctuary' cities after sheriffs push back on non-compliant label, by Reuters' Ted Hesson — Chris Christie says Trump is giving free rein to white-collar criminals, by POLITICO's David Cohen — 'Completely unworkable': Sculpture experts say Trump's $34M statue garden has major problems, by POLITICO's Michael Schaffer TRANSITIONS — Jim Webb has started J Webb Strategies, a communications and crisis management business. He was director of operations at Serafin & Associates before it merged last year with Mercury Public Affairs. Webb also previously had a long career as a journalist for The Associated Press and was political editor at the Chicago Tribune. — Channyn Lynne Parker becomes interim CEO of Equality Illinois starting July 1. An Equality Illinois board member, Parker will serve in the post part-time while continuing in her full-time position as CEO of Brave Space Alliance, which serves LGBTQ+ individuals. Earlier this year, Brian Johnson announced he's stepping down as Equality Illinois CEO on June 30, via Windy City Times' Jake Wittich. — Alison Pure-Slovin has been named director of social action and partnerships for Simon Wiesenthal Center's Midwest office. She has been head of the organization's Midwest office since 2012. IN MEMORIAM — Richard Garwin, Chicago physicist who created the hydrogen bomb and worked to see it wasn't used, dead at 97, by the Sun-Times' Mitch Dudek EVENTS — Tuesday: State Rep. Kam Buckner is holding his Buckner Blues Bash. Details here — Saturday and Sunday: The Fort de Chartres Rendezvous, an annual tradition in Randolph County, takes place at the Fort de Chartres State Historic Site. Details here TRIVIA FRIDAY's ANSWER: Congrats to Ron Silver for correctly answering that Chicago's Monadnock Building is the tallest load-bearing brick building ever constructed. TODAY's QUESTION: Which boxing champion lost to Muhammad Ali and later ran for Chicago alderman? Email skapos@ HAPPY BIRTHDAY Congresswoman Delia Ramirez, business consultant Sonya Jackson, attorney Pejman Yousefzadeh, Kieloch Consulting Congressional Services Director Hannah Botelho, labor insider and lobbyist Alison Howlett, Tribune columnist Clarence Page, comms adviser Lauren Pulte and Dave Neal, legal chief for the State's Attorneys Appellate Prosecutor, who turns 70 -30-
Los Angeles Times
17-05-2025
- Business
- Los Angeles Times
Newsom says bailing L.A. out of budget crisis is ‘nonstarter.' Bass remains hopeful
For anybody confused about whether Gov. Gavin Newsom planned to come to Los Angeles' rescue Wednesday when he announced his May revision to the state budget, a clue could be found on the front page of his spending plan. In an AI-generated image, the budget cover page featured the Golden Gate Bridge and the San Francisco skyline, along with office workers who appear to be chatting it up in a forest glade next to an electric vehicle charging station. Not a hint of Los Angeles was anywhere to be seen. Deeper in the budget proposal, no salvation was found for L.A. And at a news conference Wednesday, Newsom said flatly that he did not plan to provide cash to help dig the city out of its budget hole. The city is facing a $1-billion shortfall due to inflated personnel costs, higher than ever liability lawsuit payouts and below-expected revenues. 'The state's not in a position to write a check,' Newsom said. 'When you're requesting things that have nothing to do with disaster recovery, that's a nonstarter ... I don't need to highlight examples of requests from the city and county that were not related to disaster recovery and this state is not in a position, never have been, even in other times, to address those requests, particularly at this time.' The governor's rejection of Mayor Karen Bass' pleas for state aid came as he discussed the state's own economic woes. The state is confronting a $12-billion budget deficit in part due to a 'Trump Slump,' Newsom said. The governor had to make cuts to his own signature program offering healthcare to immigrants without proper documentation. The governor made sure to remind reporters Wednesday that the state had been more than willing to help with fire recovery efforts, but said that was the limit of its generosity. Newsom said that of the $2.5 billion offered to Los Angeles after the fires, more than $1 billion remained unused. That funding helped with emergency response and initial recovery from the January wildfires. Despite Newsom's edict, Bass didn't appear ready to throw in the towel. She said she and the governor were 'in sync' and in regular contact about the situation. State money to help with the budget crisis would be fire-recovery-related, Bass insisted. 'We had to spend a great deal of money of our general fund related to the wildfires. If we are able to get that reimbursed that relieves some of the pressure from the general fund,' Bass said in an interview with The Times. 'We submitted a document to him where we are asking him if the state would be willing to give us the money up front that FEMA will reimburse — so we are requesting 100% fire-related.' Bass visited Sacramento in March and April. She and L.A. legislators first requested $1.893 billion in state aid to help with the budget crisis and disaster recovery. The mayor has since pared down the request, but the amount she is now requesting is not public. In the initial request, they asked for $638 million for 'protecting city services under budgetary strain.' That request is likely dead. But the $301-million request for 'a loan to support disaster recovery expenses pending FEMA reimbursement' still stands. Bass said she most recently met with the governor two weeks ago, and he informed the mayor that the state's financial situation was not looking good. The revision is just a starting point for final budgetary negotiations between the governor and the Legislature, and the state budget won't be completed until at least mid-June, weeks after the deadline for the City Council to approve its own budget. 'We have 36 members of the L.A. delegation fighting for the city and we'll just have to wait and see what happens in June,' said Assemblymember Tina McKinnor, who chairs the Los Angeles County Legislative Delegation. McKinnor said she is confident that the state budget will have money not just for fire recovery, but also to help the city manage its broader financial woes. 'We will not fail L.A.,' McKinnor said. With the state lifeline in serious doubt, the cuts the city will have to make to balance its budget took another step toward reality. While Bass is still hopeful for state aid, the council seemed less hopeful. 'We expected and planned for this outcome, but that doesn't make it any less frustrating. The governor's decision to withhold support from California's largest city after we experienced the most devastating natural disaster in the state's history is a serious mistake, with consequences for both our long-term recovery and the strength of the state's economy,' said Katy Yaroslavsky, who chairs the council's budget committee. 'This will not be a 'no-layoff' budget,' Yaroslavsky said on May 8 at a budget hearing. Bass stressed that she is still trying to avoid any layoffs. The city plans to avert further layoffs by transferring employees to the proprietary departments, like the harbor, the airport and perhaps the Department of Water & Power. 'We're all working very, very hard with the same goal in mind and that is having a balanced, responsible budget that avoids laying off city workers,' she said Thursday. — MOURNING ONE OF CITY HALL'S OWN: Former chief of staff to Councilmember Kevin de León and longtime L.A. politico Jennifer Barraza Mendoza died Tuesday at 37 following a long battle with cancer. Barraza Mendoza began her career organizing with SEIU Local 99, helped lead De León's Senate campaign and also served as a principal at Hilltop Public Solutions, among other roles. 'In a political world of shapeshifters, she stood out as fiercely loyal and guided by principle,' De León said in a statement. 'She never sought the spotlight — but when tested, she rose with unmatched strength to protect her team, her community, and what she knew was right.' — MINIMUM WAGE WAR: The City Council voted Wednesday for a sweeping package of minimum wage increases for hotel workers and employees of companies at Los Angeles International Airport. One hotel executive said the proposal, which would take the wage to $30 in July 2028, would kill his company's plan for a new 395-room hotel tower in Universal City. Other hotel companies predicted they would scale back or shutter their restaurant operations. The hotel workers' union countered by saying business groups have made similar warnings in the past, only to be proved wrong. — SECOND TIME'S A CHARM: Surprise! On Friday, the City Council had to schedule a do-over vote on its tourism wage proposal. That vote, called as part of a special noon meeting, came two days after City Atty. Hydee Feldstein Soto's office warned that Wednesday's vote had the potential to violate the city's public meeting law. — READY TO RELAUNCH: Councilmember Eunisses Hernandez plans to host her campaign kickoff event for her reelection bid Saturday in Highland Park, where she was born and raised. She already has a few competitors in the race, including Raul Claros, who used to serve on the Affordable Housing Commission, and Sylvia Robledo, a former council aide. The left-wing councilmember has already won the endorsements of Council President Marqueece Harris-Dawson and from colleagues Heather Hutt, Ysabel Jurado, Hugo Soto-Martinez and Nithya Raman. Controller Kenneth Mejia also endorsed her. — PHOTO BOMB: Recently pictured with Eunisses Hernandez: Political consultant Rick Jacobs — the former senior aide to then-Mayor Eric Garcetti who was accused of sexual harassment. Jacobs now works as a consultant for the politically powerful Southwest Regional Council of Carpenters. Per a post on Jacobs' LinkedIn, Hernandez posed for a photo this week with Jacobs and several union members while presenting the group with a city certificate of recognition. Jacobs has denied the harassment allegations, but the scandal bedeviled Garcetti in his final years in office and nearly derailed his ambassadorship to India. Jacobs has remained in the political mix — some may remember his controversial appearance at Bass' exclusive 2022 post-inauguration Getty House afterparty. Also worth noting: The Carpenters are major players in local elections, and their PAC spent nearly $150,000 supporting Hernandez's then-opponent Gil Cedillo in the 2022 election. 'Councilmember Hernandez was proud to stand with the carpenters who built the little library at North East New Beginnings, the first-of-its-kind interim housing site she opened in 2024. She was there to honor their craftsmanship and community contribution — nothing more. She did not choose who else appeared in the photo,' said Naomi Villagomez Roochnik, a spokesperson for Hernandez. — PARK GETS AN OPPONENT: Public Counsel attorney Faizah Malik is challenging Councilmember Traci Park from the left, the tenants rights lawyer announced Thursday. Malik is styling her campaign in the mold of prior progressive incumbent ousters, she said, though she has yet to garner any of their endorsements. But she did get an Instagram signal boost from former CD 11 Councilmember Mike Bonin, who characterized her as 'A Westside leader who will fight for YOU and your family.' Meanwhile, centrist group Thrive LA had a fundraiser for Park this week, and declared her its first endorsement of the 2026 cycle. — FIREFIGHT: Active and retired firefighters blasted the council's recommendation to nix 42 'Emergency Incident Technicians,' who help develop firefighting strategy and account for firefighters during blazes. In a letter to the council, the firefighters said the 1998 death of firefighter Joseph Dupee was linked to removal of EITs during a previous budget crisis. 'Please do not repeat the same mistake that was made in 1998 when EITs were removed and said removal was found to be a contributing factor in the death of LAFD Captain Joseph Dupee,' the firefighters wrote. — EMPLOYMENT LAW AND ORDER: Some LAPD officers are hitting the jackpot on what are known as 'LAPD lottery' cases. The city has paid out nearly $70 million over the last three years to officers who have sued the department after alleging they were the victims of sexual harassment, racial discrimination or retaliation against whistleblowers. The massive payouts are not helping the city's coffers. One of the leading causes of the current fiscal crisis is the ballooning liability payments that the city makes in settlements and jury verdicts. — WATER OLYMPICS: L.A. County's plan to run a water taxi between Long Beach and San Pedro during the Olympics paddled forward this week. Supervisor Janice Hahn introduced a motion, with co-author Mayor Bass, to launch a feasibility study assessing ridership demand, cost and possible routes. '[The water taxi] would give residents, workers and tourists an affordable alternative to driving and parking at these Games venues,' Hahn said. — ROBO-PERMIT: City and county residents submitting plans to rebuild their burned down properties could have their first interaction with an AI bot who would inspect their plans before a human. Wildfire recovery foundations purchased the AI permitting software, developed by Australian tech firm Archistar, and donated it to the city and county. The tech was largely paid for by Steadfast L.A., Rick Caruso's nonprofit. — TRUMP'S VETS MOVE: President Trump signed an executive order calling on the Department of Veterans Affairs to house up to 6,000 homeless veterans on its West Los Angeles campus, but even promoters of the idea are skeptical of the commander in chief's follow-through. 'If this had come from any other president, I'd pop the Champagne,' said Rep. Brad Sherman (D-Sherman Oaks), whose district includes the West Los Angeles campus. Trump, he said, follows up on 'like one out of 10 things that he announces. You just never know which one. You never know to what extent.' — ADDRESSING THE ELEPHANTS IN THE ROOM: A Los Angeles County Superior Court judge denied a motion for a temporary restraining order Thursday that sought to stop the L.A. Zoo from transferring elephants Tina and Billy to the Tulsa Zoo. The judge said the decision was out of the court's purview. The zoo said Thursday that the 'difficult decision' to relocate the pachyderms was made with the 'care and well being' of the animals at top of mind. 'Activist agendas and protests are rightfully not a consideration in decisions that impact animal care,' the statement said. — CHARTER SQUABBLE: Bass made her four appointments to the Charter Reform Commission this week. She selected Raymond Meza, Melinda Murray, Christina Sanchez and Robert Lewis to serve as commissioners. She also named Justin Ramirez as the executive director of the commission. Bass's appointments came on the heels of reform advocate Rob Quan sending out mailers about the mayor's delay in making appointments, which left the commission unable to get to work. 'Karen Bass wasted eight months. That was when her appointments were due. Eight months ago,' Quan said in an interview. — WORKDAY TROUBLE: The Department of Water and Power is slated to adopt a new human resources software, Workday, in mid-June. But Gus Corona, business manager of IBEW Local 18, warned of 'serious concerns' and the potential for 'widespread problems and administrative chaos.' In a letter this week to DWP CEO Janisse Quiñones, which The Times obtained, Corona said there was a 'consistent lack of clarity' about the new system, especially around union dues and benefit deductions, retroactive pay and cost of living adjustments. 'The level of uncertainty so close to a planned launch date is deeply troubling,' Corona wrote. That's it for this week! Send your questions, comments and gossip to LAontheRecord@ Did a friend forward you this email? Sign up here to get it in your inbox every Saturday morning.
Bloomberg
15-05-2025
- Business
- Bloomberg
Newsom Rethinks Budget Under ‘Trump Slump'-Inflicted Deficit
Welcome to Bloomberg's California Edition—covering all the events shaping one of the world's biggest economies and its global influence. Join us each week as we put a unique lens on the Golden State. Sign up here if you're not already on the list. Gavin Newsom kicked off the year expecting California lawmakers to have a modest surplus to help shape next year's budget. Instead, the state has plunged into a $12 billion deficit —a turnaround Newsom blames on a tariff-induced 'Trump Slump.'
