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≡ L.A. BUDGET HEARINGS ≡
In March, Los Angeles Mayor Karen Bass explained that the City’s finances were in trouble:
“Downward economic trends make it so revenues to the City’s budget in 2025-26 are now projected to be hundreds of millions of dollars less than previously projected.”
The $13.95 billion budget plan for 2025-26 submitted by the City showed a nearly $1 billion gap between revenues and expenses that had to be closed, most urgently $315 million less in revenues than were expected and $275 million in restoration of reserves to meet the City’s reserves policy of 5% of its general fund.
And the City has paid $504 million in liability claims in fiscal 2022 ($91 million), 2023 ($147 million) and 2024 ($247 million), primarily from issues dealing with police ($222 million), public works and street services ($74.8 million) and sanitation ($74.3 million). So, an additional $100 million was added to the budget to handle a continuing increase in lawsuit losses and settlements.
All of this has lead to the City’s budget proposal to save $282 million via1,647 position layoffs and the cancellation of 1,076 vacant positions, and another reduction of $154 million in overtime and as-needed hires. Another $86 million in capital projects will be deferred and so on.
The impact of these proposed cuts are being discussed at City Hall with the City Council’s Budget and Finance Committee, which heard about choices that City executives and department managers are having to make that impact planning for City services for the 2028 Olympic and Paralympic Games:
● On 29 April, Council member Katy Yaroslavsky asked Deputy Mayor Matt Hale:
“Some resources are provided for work associated with the 2028 Olympic and Paralympic Games. What’s the overall plan, and what are the resource needs so we can be ready for the ‘28 Games? Is there an official strategic plan? Can you talk a little bit about that?”
Hale’s reply: “I think the investments we’re making this year are headed in the direction of developing that plan. I’m not going to speak to a plan that I have not seen, but I think what we are trying to accomplish is laying at least a foundation and a groundwork to begin having the totality of that.
“I think one of the risks in this budget and especially with as many proposed position cuts is just having the workforce that we need to deliver on those Games. And it sort of reinforces the need for us to have a very robust volunteer program, and a very robust strategic plan that decides where we need to go outside for help and where we need to bring in restorations in between now and the implementation of the Games.”
Replied Yaroslavsky:
“Query whether reducing all these positions will allow us to be ready for the ‘28 Games. Volunteers are going to be great, but they’re not going to design projects and do the planning and engineering.”
● On 30 April, Emergency Management Department General Manager Carol P. Parks was asked by Council member Eunisses Hernandez:
“Is the department’s proposed budget able to maintain operational readiness for both routine emergencies and high-profile international events on the horizon?”
Parks, who had already stated that her department was desperately understaffed, replied, “The answer is no” and added later:
“Here in Los Angeles, we just don’t do one thing at a time. So we can’t ‘rain today’ and tomorrow, ‘don’t rain,’ because we have another event. But the past few weeks, and months have shown us that we need to respond to planned events, we need to be ready for no-notice events and then we need to ensure that we are ready for anything that comes up unexpectedly.”
She said that her department has 31 staff now, compared to about 200 for a similar office in New York City.
● On 2 May, Department of Transportation General Manager Laura Rubio-Cornejo explained that 150 filled and vacant traffic officer positions are proposed to be eliminated in the budget, with additional cuts in dispatch center positions (61%) and a 24% cut in engineering staff, noting:
“Taken together, this budget will make it impossible for us to deliver on the city’s 2028 Games Mobility Objectives, whether that is achieving a car-free event or facilitating safe and orderly vehicle access through planned road closures and traffic-control services.”
She proposed a series of changes, then was asked by Council member Bob Blumenfield:
“Exhibit H includes an instruction to have DOT and every department prioritize projects near the venues for the 2028 Games. If this instruction is included and this budget is adopted, what capacity will DOT have to implement safety projects in the Third District or in every other part of the City that is not actually near a venue?”
Rubio-Cornejo explained:
“What I will note is what is helpful about that direction, what would be helpful about that direction is ensuring that every single department is prioritizing whatever resources they have towards delivering for the Games.
“And while every Council district does not have a Games venue in their district, there’s two components of this.
“There’s the Games venues, the first-last mile, the assets and infrastructure that should be addressed around the Games venues.
“Then there’s also the regional aspect, that these are regional Games that go well beyond even Los Angeles County. And from that perspective, and working closely with Metro, we are delivering and supporting them on delivering bus-only lanes and they are working towards delivering rail projects.
“And so in essence, when we look at the map, every single Council district does receive some mobility improvement as part of the Games, whether it’s being built and delivered by the City of Los Angeles or by Metro’s own regional agency.”
Blumenfield, whose Third District does not have a 2028 venue:
“I understand that we all get a benefit from the Olympics, they’re regional and all that’s great. But in terms of telling my constituents that this budget, some of the critical transportation projects in their district, can I say that any of them will get funded, or does this prioritization mean that none of them get funded?”
Rubio-Cornejo:
“What I would say is that at reduced staffing levels as proposed within the budget, if we were directed only to focus on Games delivery, that is likely the only thing we would be able to do.”
Blumenfield:
“That’s my fear, is that doing this is telling my constituents that there will be no projects within the district, they just have to enjoy the benefits of this regional everything, but forget the streets that are broken in their area.”
Budget hearings are continuing; the L.A. City budget is required to be voted on by 1 June.
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