The slumping economy has forced the Port of Los Angeles to cut its current spending budget by more than $20.5 million amid a projected 20 to 30 percent decline in shipments during the first quarter of 2009.

Port officials in recent months have eliminated several unfilled positions and reduced some costs, including travel expenses, to keep the books balanced. An optimistic harbor commission had signed off in June on a $1.15 billion budget for this fiscal year, a 15 percent increase from the previous one.

Given the dismal economic forecast now, “our most prudent course of action is to hunker down and plan for possible significant reductions in revenues in the coming year,” said Geraldine Knatz, executive director of the Port of Los Angeles.

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