Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
California Cities Warn Of 'Great Depression' From Looming $7 Billion Budget Chasm
City Hall from Grand Park on Tuesday March 24. (Chava Sanchez/ LAist)
()
Our news is free on LAist. To make sure you get our coverage:Sign up for our daily coronavirus newsletter. To support our non-profit public service journalism:Donate Now.
The 482 cities in the state of California have a mammoth looming budget gap that will force cuts to police, housing, parks and recreation, and other core services in most jurisdictions, according to new analysis from the League of California Cities.
All told, cities report an anticipated:
"$7 billion general revenue shortfall over the next two fiscal years. The shortfall will grow by billions of dollars if COVID-19 stay-at-home orders extend into the summer months and beyond."
Support for LAist comes from
"It's a new type of crisis that has touched nearly every corner of our communities," Yountville Mayor John Dunbar, League of California Cities President said on a conference call today.
The League of California Cities sent a letter to Gov. Gavin Newsom today asking for the state to establish a fund to help municipalities weather the COVID-19 budget calamity.
The cities face a one-two punch:
- Unexpected emergency spending to address the coronavirus, including disinfecting public facilities, purchasing personal protective equipment and standing up emergency operations.
- Collapsing revenue streams as sales, hotel, and other taxes shrink dramatically.
"What I worry about is not so much the immediate impact, but the possible cascading effects," said Fresno Mayor Lee Brand, citing the risk of renters falling hopelessly behind on payments and subsequent possible mortgage defaults in the residential and commercial sector. "Unless this is addressed by the federal government with substantial funding....this will be the Great Depression. Not the Great Recession."
Earlier this week, L.A. Mayor Eric Garcetti released a budget for the next fiscal year starting July 1 that included dramatic cuts to nearly every city department. L.A. County has already announced a $1 billion sales tax revenue shortfall, and CEO Sachi Hamai warned residents would feel the cuts in her new budget, set to be released Tuesday.
The coronavirus relief funding approved by Congress so far has allocated $150 billion in support for state and local governments. But only cities with populations over 500,000 are allowed to apply directly to the Treasury for these funds.
Read more in the infographic prepared by the League of California Cities:
Support for LAist comes from
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
If approved, the more than 62-acre project would include 50 housing lots and a marina less than a mile from Jackie and Shadow's famous nest overlooking the lake. -
The U.S. Supreme Court lifted limits on immigration sweeps in Southern California, overturning a lower court ruling that prohibited agents from stopping people based on their appearance.
-
Censorship has long been controversial. But lately, the issue of who does and doesn’t have the right to restrict kids’ access to books has been heating up across the country in the so-called culture wars.
-
With less to prove than LA, the city is becoming a center of impressive culinary creativity.
-
Nearly 470 sections of guardrailing were stolen in the last fiscal year in L.A. and Ventura counties.
-
Monarch butterflies are on a path to extinction, but there is a way to support them — and maybe see them in your own yard — by planting milkweed.
Best of LAist