2003 WHAT'S AHEAD 2004 FORECAST: STORIES TO LOOK FOR IN THE COMING YEAR.

CITY BUDGET IN '04

For Los Angeles, this coming year will be one of continuing conflict over finances - and whether the city's appeal to the state for more funds will be answered.

The city has a $5.1 billion operating budget with only a small amount of wiggle room, officials say, in which to maintain municipal services.

Mayor James Hahn and the City Council already have approved some spending cuts, but hope to avoid further cuts with a continuing rebound in the economy.

After doing the budget, Hahn and the council are expected to focus even more on the $9.1 billion modernization plan for Los Angeles International Airport.

While the plan has received mixed reviews as to whether it will improve safety and traffic flow, Hahn has staked a great deal of his mayoral authority on pushing the plan through.

Feeling the pinch

After a year that saw record spending cuts and the shutdown of some Los Angeles County jails and health clinics in 2003, local officials say they expect more tough times ahead in 2004 because of the continuing budget pressures on state and local governments.

``Our local dollars are once again going to be under siege,'' said Supervisor Don Knabe, who became chairman of the county Board of Supervisors in early December, ``but hopefully this board can foster a better working relationship not only with the Legislature but with our new governor in Sacramento.''

County officials expect the rising cost of workers' compensation as well as hundreds of millions of dollars in proposed state cuts to drain funds away from local programs that help children, seniors and people who have disabilities.

Knabe plans to call for a workers' compensation summit to address the issue, asking business and government agencies and state lawmakers to come up with ideas to resolve the crisis.

BLOCKBUSTER '04

Jan. 25: Golden Globes

Feb. 4: Grammy Awards

Feb. 22: SAG Awards

Feb. 29: Oscars

March 26: ``Scooby-Doo 2: Monsters Unleashed,'' with Freddie Prinze Jr. and Sarah Michelle Gellar 

May 14: ``Troy,'' with Brad Pitt and Orlando Bloom

May 21: ``Shrek 2''

June 4: ``Harry Potter and the Prisoner of Azkaban''

July 2: ``Spider-Man 2,'' with Tobey Maguire and Kirsten Dunst

July 30: ``Catwoman,'' with Halle Berry

Aug. 11: ``The Princess Diaries''

FUTURE FORTUNE

The biggest question heading into 2004 is whether there will be a substantial and sustained improvement in the local economy.

All the early signs are favorable, but there remain astounding deficits at the state level. And though there has been marked improvement in the national economy, job growth has been limited.

One thing appears certain: The housing market will remain tight locally and prices will continue to soar. But interest rates may shift, again depending on how the economy moves.

ACTIVE SPORTS YEAR

The 2004 sports year will get off to a big, and controversial, start on New Year's Day. A victory by USC in the Rose Bowl against Michigan would continue the cry to overhaul the current college football bowl system since the Trojans are not in the national championship game Sunday despite being the No. 1 team in the country in both polls.

After college football subsides, the NFL will take center stage as the Super Bowl will be played Feb. 1 in Houston.

Two weeks later, the NBA All-Star Game will come to Staples Center. Although the game is the main event, the NBA's All-Star Jam Session, an interactive experience for the general public at the Convention Center, should prove hugely popular.

A week after that (Feb. 19-22) is the Nissan Open at Riviera CC.

In March (11-13), the Pac-10 basketball tournament will return to Staples Center. The Dodgers will begin play at home against the Padres on April 5, while the home opener for the Angels will be April 13 vs. Seattle.

The California Speedway will be home to two NASCAR Nextel Cup (formerly Winston Cup) races in 2004. The Auto Club 500 is set for May 2, while the Pop Secret 500 will be Sept. 5 under the lights.

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Photo:

(color) The San Fernando Valley spreads in the distance as seen from Porter Ranch.

Andy Holzman/Staff Photographer