BUDGET AN IOU TO SEIU WORKERS.

Byline: Rick Orlov Staff Writer

The Los Angeles City Council unanimously approved the 2004-05 budget Tuesday that gives roughly 3 percent pay raises to all city workers next year - except the 10,000 lowest paid, the clerical and support staffers.

City officials and union leaders are negotiating a three-year contract for the municipal workers at City Hall, but both sides concede that the budget crisis has left no more money in the $5.3 billion budget for higher salaries in the fiscal year that begins July 1.

``We are in tough times and the money just isn't there,'' said City Administrative Officer Bill Fujioka.

Julie Butcher, general manager of Service Employees International Union Local 347, said the union is seeking raises in subsequent years, as well as improved work rules and better treatment of part-time workers.

``We are looking to be part of the solution and not part of the problem,'' Butcher said.

``These are things that often get lost in negotiations and we have an opportunity now to deal with them. A lot of these are low-cost items and some, we think, will save the city money in the long run.''

Butcher said the negotiators also are discussing workers' compensation, and trying to find ways to reduce the city's costs and get employees back on the job.

``None of us can understand a system that rewards people for not working. We are looking at proposals to provide the treatment, but keep doctors and lawyers out of the process.''

The city has roughly 34,000 employees, excluding those who work for the proprietary Harbor and Water and Power departments. All those outside of the SEIU bargaining unit will receive a 3 percent raise next year, including police, firefighters and the staffs of Mayor James Hahn and the 15 City Council members.

And, next year, the city will enter into negotiations with DWP workers, who historically receive even higher salaries than the rest of the city staff.

Figures from Fujioka's office show that civilian salaries in Los Angeles average $60,768 a year with most SEIU members earning far less. Police officer salaries average $78,227 a year while firefighters' average pay is $79,669 a year.

The last time any city workers went without a pay increase was in fiscal 1993-94 when the nation was in the grip of a recession.

``We helped out then and we are willing to help out now,'' Butcher said. ``We want the city to succeed.''

Last year, the city's financial crisis prompted officials to consider layoffs and asking unions to reopen contracts in order to reduce negotiated pay raises, but ultimately they decided not to.

Jon Coupal of the Howard Jarvis Taxpayers Association applauded the recognition of the financial problems facing the city by the SEIU but noted that government workers earn more than those in the private sector.

``We have to say they do get more fringe benefits than anyone in the private sector and raises are hard to come by these days,'' Coupal said.

Deputy Mayor Doane Liu, who is Hahn's budget director, said the budget passed Tuesday contained only modest increases and no general tax increases or dramatic hikes in public costs.

``The mayor went to the City Council and worked with the members on their priorities after meeting with the leaders of the neighborhood councils,'' Liu said. ``This was a priority-based budget where there was a consensus on how the city should be spending its money.''

Councilman Bernard Parks, chairman of the council's Budget and Finance Committee, said he is concerned that the city finds some stability in its operations and that it needs to keep a close watch on developments, particularly if the state government wants to take more local tax revenue.

``We have a balanced budget that has addressed some of the most important issues, but we are still in a very tenuous situation,'' Parks said. ``We are still waiting to see what the state will do to us, and that could have a dramatic impact on our programs.''

The city budget included increases in more than 180 fees and permits, including a $1 increase for admission to the Los Angeles Zoo and a $1 monthly increase in sanitation equipment charges.

Parks said he hopes to see a more organized approach on all fees in future years.

Fujioka said most of the increases simply reflect higher city expenses.

``What we look at for a lot of these is annual increases to cover inflation and the cost of services,'' Fujioka said. ``In a lot of cases, the money we get back isn't full cost recovery but a portion to cover some of those costs.''

Rick Orlov, [phone]

rick.orlov(at)dailynews.com