The Brief

Facing a nearly $1 billion shortfall driven by dwindling revenues and increasing costs, Los Angeles Mayor Karen Bass on Monday proposed laying off 1,647 workers and closing some city departments in the fiscal year that starts July 1.

It's the most austere budget since the city was wracked by the 2008 recession.

In her State of the City speech delivered shortly before the budget was released, Bass addressed city workers directly, saying "you are the city’s greatest asset... my proposed budget, unfortunately includes layoffs, which was a decision of absolute last resort."

The budget proposal must still go before the City Council for a vote.

City officials said the mayor was contemplating as many as 3,500 layoffs, but was able to cut that in half by, among other things, deferring capital projects.

There are currently about 38,000 city positions, not counting the departments of water and power, harbor and airport. In all, the city employs 32,405 people.

The layoffs would occur across a range of departments and affect city services. The proposal would also eliminate several vacant positions.

Some victories

In a wide-ranging speech, Bass also sought to highlight victories, saying there was a 10% reduction in street homelessness, a 14% drop in homicides and what she described as the "fast" pace of recovery from the Palisades Fire.

"The state of our city is this: homelessness is down, crime is down," said Bass. "These are tough, tough challenges and they show we can do so much more."

She went on to announce new action to expedite the permitting process for fire victims, establishing a self certification program and calling on the City Council to waive all plan check and permit fees.

The move drew praise from Larry Vein with community initiative Pali Strong.

“We are so delighted to see that the fees are being waived for permits. We’ve been asking for some relief in that area,” he said. “And we are super excited that it's what’s called self certification on the plans. That is going to be huge.”

The mayor also looked forward to the Olympics in 2028, saying current investments will make life better for Angelenos in the future.

Strong reactions

Labor leaders immediately denounced the proposed layoffs.

“We’re going to fight for every single one of these city jobs. One layoff is too many,” said David Green, president of the Service Employees International Union, Local 721, which represents 10,000 city workers.

He warned the ramifications of the layoffs would be broad.

“These are folks who are frontline workers serving the community every day,” said Green, whose union represents tree trimmers, sanitation workers and trash truck drivers, among others.

Ironically, the layoffs are being driven in part by increased labor costs resulting from union contracts signed just last year. Those contracts will cost the city an extra $250 million in the coming year, according to city officials.

A number of City Council members expressed resignation that the layoffs were inevitable.

Councilmember Bob Blumenfield 85% to 90% of the city’s budget is labor costs.

“So if you have this kind of huge deficit, it is almost impossible to solve for that deficit without affecting labor costs,” he said.

Liability payments

Liability payments have also ballooned and are costing the city more. Legal payouts have averaged $100 million annually for the past 10 years, according to city officials.

The new proposed budget set aside $187 million for liability claims against the city — more than twice as much as had been budgeted in recent years — but this is still well below the anticipated $320 million in liability expenses to be paid this fiscal year.

Officials blamed costlier jury verdicts and legal settlements with people who sued the city over such things as police use of force and internal staff harassment.

The unexpected, significant costs of fighting the Palisades Fire, as well the aftermath, have also contributed to budget pressures.

Meanwhile, as costs increase, revenues are on the decline.

Business and sales taxes are both down, according to city officials, while hotel and property taxes, which make up 35% of revenues, are expected to be below projected growth.

President Donald Trump’s tariffs are also expected to hit L.A. hard, adding to the fiscal uncertainty.

General fund revenue is projected to be $8 billion — down from the forecasted $8.14 billion.

Homelessness, police and fire

Mayor Bass gives the State of the City address on April 21, 2025.

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Screenshot of LA Cityview 35 livestream

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Under the mayor’s plan, the budget for her signature Inside Safe homelessness program would remain the same, but spending on helping people on the streets would be slightly lower, according to city officials.

The plan also forecasts a smaller Police Department, which has been shrinking in part because evidence indicates fewer people want to become police officers than in previous years.

The LAPD is expected to finish this fiscal year with 8,733 officers. The mayor’s plan projects it will end the next fiscal year with 8,639 officers.

In the wake of the Palisades Fire, the Fire Department will see an increase of funding by 12.7%, according to city officials. The plan adds 277 new positions and calls for more paramedics, mechanics and fast response vehicles — pickup trucks with a small water tank, hose and medical supplies that can respond to an increasing number of calls for help from unhoused people.

Bass’ proposal also calls for consolidating four city departments — the departments of Aging, Economic, and Workforce Development, and Youth Development will be consolidated under the Community and Family Investment Department.

In addition, the plan calls for eliminating the Health Commission, which is an advisory body. It would also get rid of the Innovation and Performance Commission, as well as the Climate Emergency Mobilization Commission.

The mayor’s budget also maintains a 6% reserve fund, above the 5% required by city policy.

Bass said she will travel to Sacramento this week in hopes of getting some financial help from state officials, according to city officials.

LAist reporter Jordan Rynning contributed to this story.

The federal financial aid process opened this past week for students applying to college for next year. But for many California students, a source of state financial help remains untapped.

In 2022, the state launched the California Kids Investment and Development Savings Program, also known as CalKIDS, and began creating investment accounts for more than 6 million children in the state to use for higher education.

Babies born on or after July 1, 2022, can get up to $175 in their accounts, while low-income public school students can claim up to $1500.

In Los Angeles County, about 1.1 million public school students are eligible for the accounts, but fewer than 20% of kids have claimed them, said Cassandra DiBenedetto, executive director of California’s ScholarShare Investment Board. The claim rate is even less for babies — about 11%.

“The money itself, it has a long trajectory. So you have these newborns, and there's not a sense of urgency among some parents; they know the account's there, it’s been created. Parents are busy,” DiBenedetto said.

There is no deadline to claim the money, which is already growing in the investment accounts. (You do have to use the money by age 26). But DiBenedetto says kids are more likely to see themselves as college-bound if they have it — and will be able to watch the account grow over time.

“ You talk to second-and third graders who are like, ‘I'm gonna go to UC Santa Barbara,’ ‘I'm gonna go to Cal Berkeley,’” she said.

The state is working with the Los Angeles Unified School District and other school districts to get students signed up.

The city’s top financial adviser is recommending that the Los Angeles City Council deny a police department request to procure 300 additional vehicles for the 2028 Olympics and Paralympics.

The report, submitted to the council Monday by City Administrative Officer Matt Szabo, found that the L.A. Police Department would have enough vehicles to temporarily expand its fleet during the Games without the additional cars.

LAPD officials had previously requested around $31 million, arguing the additional officers deployed for the Games will need additional vehicles for their police work.

But Szabo disagreed in his report, finding instead that the department would soon have a large enough fleet.

“Given the current available vehicles and new vehicle procurements which have already been funded, it is not recommended to authorize the procurement of any additional police vehicles for the 2028 Games deployment,” Szabo wrote.

An LAPD spokesperson declined to comment on the city administrative officer’s report. Previously, the department has emphasized that its request seeks only to temporarily expand its fleet, with plans to retire old vehicles after the Games.

The police department has offered different estimates of how many additional vehicles it will need to patrol the Olympics. Two months after the LAPD asked for an additional 300 vehicles, the department released another report estimating an even higher need: 576 police vehicles.

Either way, Szabo’s report found that more than 1,100 police vehicles not yet in use by the department were funded in the past three budget cycles. He said those should be sufficient for the Olympics.

When you sit down at Birria Pa La Cruda in El Sereno, you might be expecting one thing. What you'll leave talking about is something else entirely, and it's just as good.

Take the mushroom quesataco. It starts with a tortilla brushed with avocado oil and griddled until lightly crisp, then layered with a thin skirt of cheese and a smooth smear of refried red kidney beans. On top goes a heap of shimeji mushrooms braised in a house-made salsa verde, mild, nutty and savory with a bright finish.

It's a slight departure for chef Carlos Jaquez, who spent seven years building a reputation for the birria de res at his popular pop-up. Now, at his new brick-and-mortar just blocks from where he got his start, he's serving his much-loved birria alongside several vegetable-focused dishes — including this one.

You get the sense that Jaquez has been refining each one for years through his pop-up, his work as a private chef and his high-end dining background at Otium and Bestia.

Homegrown talent

Jaquez grew up in El Sereno and launched Birria Pa La Cruda (which means “for the hangover” in Spanish) as a Sunday pop-up in 2019. Over the years, he's drawn on everything from his family's cooking to his Indigenous roots, to the bounty of local produce, building a repertoire that showcases the full range of his influences. His new place, on Alhambra Road near Cal State L.A., is his chance to prove it.

Carlos Jaquez, chef and owner of Birria Pa La Cruda, draws on the El Sereno community where he grew up and a wide range of culinary influences.

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Eric Valle

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Courtesy Birria Pa La Cruda

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"I don't wanna just be the birria guy," Jaquez said. "If people know me for just the birria, then I'm sure that one day when I cook something else they'll be like, 'Wow, he can cook other stuff too.'"

The menu

The mushroom quesataco may be exquisite, but Jaquez's birria de res hardly takes a back seat. For example: the mulita. Two corn tortillas are dipped in spiced 12-hour braising liquid, and the beef he uses is cooked in a pot lined with charred blue agave leaves that Jaquez harvests from the El Sereno hills. The meat is piled on thick, then topped with cheese, resulting in a juicy, well-seasoned bite where all the flavors and textures meld together. It's a mouthful, but the mulita shows backbone, never falling apart bite after bite.

The sweet potato tamal, topped with date-almond mole and sesame seeds, served with red amaranth leaves and pickled vegetables.

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Eric Valle

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Courstesy Birria Pa La Cruda

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Where the birria is a constant, the tamal is expected to change with the seasons. Right now, it's sweet potato and organic yellow corn masa steamed in a banana leaf, then topped with a rich mole made from California-grown dates and almonds. It's entirely vegan, though Jaquez doesn't advertise it that way. It's served alongside pickled carrots and a small salad of amaranth leaves grown just outside the space and dressed in a confit garlic vinaigrette.

Amaranth was a staple for Indigenous peoples in Mexico long before the Spanish arrived. Jaquez, who attended Anahuacalmecac, an Indigenous-focused charter school in El Sereno where students learn Nahuatl from third grade through high school, wanted it on the plate.

"We were eating amaranth and tamales and maybe even combining them thousands and thousands of years ago," he said. "Serving that on a menu today is a reflection of the resilience of our roots."

California love

Jaquez believes the caliber of his cooking comes from using local ingredients, whether it’s tortillas and masa milled in Boyle Heights by Kernel of Truth or heirloom tomatoes from Valdivia Farms in Carlsbad.

Chef Carlos Jaquez's birria de res is braised for 8 to 12 hours before it's served.

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Eric Valle

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Courtesy Birria Pa La Cruda

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"Its uniqueness comes from the locality and the quality of the ingredients that we're afforded because we're in L.A. and California," he said.

So, is it a taqueria or a restaurant?

"I don't know," Jaquez said. "It's Birria Pa La Cruda."

California’s district attorneys and the state attorney general will now have the ability to sue individual businesses that they believe are engaging in anticompetitive conduct.

But for some of its biggest proponents, it’s a hollow victory.

Gov. Gavin Newsom on Wednesday signed Assembly Bill 1776, known as the Compete Act, bringing an end to one of the most hard-fought political battles of the year. Unions and consumer rights groups supported the bill, but the state’s influential Chamber of Commerce fiercely opposed it and won several concessions to water it down.

Assemblymember Cecilia-Aguiar Curry, a powerful Davis Democrat, introduced the bill to modernize the century-old Cartwright Act, which regulates only anticompetitive conduct by two or more businesses. Many progressive Democrats, concerned about corporate consolidation of business in industries such as healthcare, ticket sales and retail, signed on as co-authors.

Newsom signed the bill along with six other small business-friendly bills on the constitutional deadline for signing legislation.

“We’re taking on predatory practices that drive up costs and shut entrepreneurs out — making sure California’s economy works for everyone, not just the biggest and best-connected,” he wrote in a release announcing his approval.

However, his signing message on AB 1776 was more circumspect.

“While I align myself with a stated goal of targeting anti-competitive conduct that harms consumers, workers, and businesses alike, we must be careful not to set the bar too low — dragging legitimate, superior business practices and products into the ambit of anti-competitive behavior,” he wrote.

He added that he expects judges and prosecutors to interpret and apply the law “in ways that penalize clear wrongdoing, without creating needless uncertainty.”

Lee Hepner, senior legal counsel at the American Economic Liberties Project, a former sponsor of the bill, wrote in a post on X that Newsom’s signing message made Hepner pessimistic that the law would be effective.

“I foresee politicized antitrust litigation budgets, partisan allegations of weaponized enforcement, novel legal defenses that find new basis in the legislative history of this bill, and public officials caving to the concentrated private power that antitrust laws are supposed to put in check,” he wrote.

The group had helped craft the legislation for years, but changed its position when Aguiar-Curry removed a “private right of action” provision that would have allowed any individual or business to sue a company they allege is harming them through anticompetitive tactics.

Other supporters included the California Federation of Labor Unions and TechEquity Action, a progressive advocacy group that lobbies for regulation of the tech industry.

Labor Federation President Lorena Gonzalez said in a statement that the new law “gets us one step closer to building a more affordable economy for working people.”

The bill grew out of a three-year review by the California Law Revision Commission, which the Legislature had asked to study changes to the 1907 Cartwright Act.

The private right of action was one of the biggest sticking points for CalChamber, which argued it would “expose businesses of all sizes to a wave of frivolous lawsuits.” The group launched a multimillion-dollar ad campaign over the summer to push to weaken the proposed law. Tech companies such as Meta and Google also spent hundreds of thousands of dollars to lobby legislators on AB 1776 and other issues.

Although Aguiar-Curry said she was disappointed the private right of action was gutted in the last weeks of the legislative session, she pressed on, and lawmakers passed the bill in the last days.

“California now has stronger tools to protect our small businesses, workers, and consumers and to make sure our markets work for everyone,” she said in Wednesday’s release.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.