Budget Deficit, Tax Hikes | featured news

First Read: As the Obama White House and Congress negotiate to avoid the so-called fiscal cliff, nearly two-thirds of Americans say they favor a balanced deal, consisting of both higher tax rates and cuts key entitlement programs.

Stagnant revenue and rising employee costs threaten City Hall with a $222-million shortfall, official says. A proposal to outsource ambulance services provokes anger from firefighters union. Los Angeles' top budget official raised the specter of bankruptcy Friday in a sweeping report that calls for new taxes, possible layoffs and the privatization of some city services.