did 18 months ago. >> the local police union is fighting back with graphic billboards. one welcomes visitors to the second most dangerous city in the state. another announces murders are up and keeps a running body count. the city of saint carlos is banning its ph.d. all together turning over to the county sheriff. a move cut 3.5-million-dollar deficit nearly in half. critics charge short changing law enforcement is a dangerous strategy. other cash-strapped cities may soon follow suit. >> they are going to have to do something. they either cut services or find a more efficient way to deliver them. outsourcing, contracting for police and fire is one way to maintain the service level while reducing costs. >> oakland has just laid off 80 officers save $14 million annually. even though violent crime son the rise.