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The pandemic-driven financial crisis at Los Angeles City Hall has deepened significantly over the past three months, with budget analysts warning the city’s shortfall could reach $400 million to $600 million by the end of the fiscal year.

The grim forecast poses some tough choices for city leaders, with a local economy battered by coronavirus shutdowns that have sent unemployment soaring, caused many small businesses to close and now threaten major cuts in municipal services.

In an update sent Friday to Mayor Eric Garcetti and various council members, City Administrative Officer Rich Llewellyn said the magnitude of the latest projected revenue shortfall, which covers the fiscal year ending June 30, “cannot be understated.”

A $400-million budget gap would represent 6% of the 2020-21 budget and exhaust all but $14 million of the city’s various reserve funds, wrote Llewellyn, the city’s top budget official.

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