Economist: Los Angeles to Benefit From Economic Stimulus Package

Los Angeles, the U.S. second largest metropolis, will benefit a great deal from the federal economic stimulus package passed by the Congress on Friday, a renowned economist said.

Of the 789 billion U.S. dollars being sought by President Barack Obama, about 26 billion dollars are expected to go to California and 6.5 billion dollars to Los Angeles, Jack Keyser of the Los Angeles County Economic Development Commission said on Friday.

The bailout money could create 75,000 to 100,000 jobs in Los Angeles, Keyser said.

Keyser declined to speculate on where the money would go and where jobs would be created until the bill is signed into law by Obama as expected.

But he said California's 42-billion-dollar deficit -- and the long-delayed state budget being hammered out to address it -- threatens to slim down the county's piece of the pie, he said.

"The (state) budget could be taking money out of our pocket just as the federal government puts it in," he said.

Legislative gridlock has left the state without enough money to pay its bills, including reimbursements for county services.

Governor Arnold Schwarzenegger and other legislative leaders developed a framework for the state budget earlier this week that is scheduled to be voted on by lawmakers Saturday.

Legislative leaders currently are working toward a deal that could wipe out the state's deficit with temporary tax hikes on retail sales, cars, gasoline and personal income.

Source:Xinhua