Its so bad that some wealthy municipalities spend a significant fraction of their budgets lobbying or fighting development in court. The government of South Pasadena, for example, a town of about 25,000, spends millions of dollars a year in legal fees to block the 710 freeway expansion. This expansion would break a huge bottleneck in the area and LA county went as far as coming up with an underground freeway plan costing a billion dollars a mile (paid for by the state and TARP!) but even that was shot down. I think they finally gave up after decades of court battles and all of the houses bought along the planned expansion are being sold by the state.

Meanwhile, the school district cuts millions from its budget every few years (from five schools), road and other infrastructure maintenance is years behind at best (roads are crumbling and El Nino took it up another level), and the emergency services have turned to donations to meet their stagnant budgets.