One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.
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."
"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:
Sponsored message
- 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:
One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief
