Which Way, L.A.?

State and Local Governments Fight over Tax Money

Los Angeles Mayor Jim Hahn unveiled his new budget today, with slightly more for police and fire protection, but enough cuts in other departments to eliminate 300 jobs. LA County is planning to cut the Sheriff-s Department, reduce mental healthcare and close libraries. Tough measures in tough times-but they could get worse, if Governor Schwarzenegger takes $1.3 billion in property taxes to help pay the state-s bills. California cities and counties are so desperate for money they may challenge Schwarzenegger by doing what he does best--appealing to voters. Warren Olney speaks with a business writer, LA City Council President Alex Padilla and LA County Supervisor Zev Yaroslavsky about what's at stake. Making News: AG Doesn't Like Supermarkets Sharing Strike Pain The owner of Ralph-s markets will pay two competing chains more than $100 million, according to Kroger-s annual report to the Securities and Exchange Commission. Kroger is sharing the windfall earned when striking grocery workers pulled their pickets from Ralph-s to focus their efforts on Safeway and Albertson-s. California-s Attorney General Bill Lockyer has filed suit, claiming the deal is illegal.