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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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.

Southern California was built on radio.

"I can still hear the jingle KFWB News 98,” wrote  Taline in Los Feliz, during a recent conversation on LAist's daily news show, AirTalk, which airs on 89.3 FM. “I grew up hearing that in my dad's minivan on the way to and from school. It has a special place in my heart.”

Back in April, broadcast company Audacy announced KNX News — one of the last-remaining all-news FM stations — was leaving the FM dial where it had simulcast on 97.1 FM since 2021. The station, which is also one of the oldest in L.A., is not budging from 1070 AM where it has been on the air for more than 100 years. The move away from FM officially happened in May to make way for a new sports talk station, which Audacy officials called an area of growth for advertisers in today’s media landscape.

The move is one in a long line of changes for radio and a reminder that before podcasts, playlists and algorithms, many Southern Californians built their days around radio broadcasts.

Radio, a daily ritual

The construction of KNX

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Herman J. Schultheis

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Los Angeles Public Library

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Michael Jackson, a well-known KNX, personality

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Los Angeles Public Library

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Larry Mantle, now in his 41st year hosting AirTalk, remembers being a kid and dreaming of what it might be like to be behind the mic at one of these radio stations.

“ I grew up with KNX," he said. “My dream job as a kid was to be an anchor on KNX or KFWB, the two local all-news radio stations, 'cause there was nothing like hosting AirTalk that even existed at that point.”

Mantle opened up the phone lines on a recent show to hear from his fellow SoCal radio lovers about the shows they miss and the memories they have. Here's what they had to say:

A love for radio, then and now  

A pilot of KMPC's traffic alert helicopter pictured with his daughter and grandson.

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Los Angeles Public Library

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A 1963 picture of Valley State College (now Los Angeles Valley College) preparing to launch KVCM

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Larry Leach

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Los Angeles Public Library

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“When you'd walk down Hollywood Boulevard where the station was, you could hear it playing as you went down the street,” said  Olivia in Glendale about KLAC 570 with Al Jarvis.

 Larry in Yorba Linda shouted out KBCA Jazz for its 24-hour jazz, saying “When I first moved out here in '68 from Phoenix, which had like an hour a week, it was a real wonder.”

 Mark in Glassell Park emailed that he loves KCRW’s Henry Rollins, writing, “I used to bristle at his unique DJ persona, but over time, I came to love him and his crazy eclectic playlists. I find his knowledge in history and punk rock fascinating. He's a gem and a legend."

"I'd like to give a shout-out to all the DJs working at KXLU, the college station at Loyola Marymount University, said  Jeremy in Culver City in an email. “That station's been on the air for nearly 60 years. I believe it's one of the best examples of what's possible with radio."

"KFWB and KRLA back in the day when they were rock music stations —  Dr. Demento, one of my favorite on-air personalities, also had eclectic music taste," said  Carrie in Desert Edge.

“ Dr. Demento was must listening when I was a kid in junior high school at Le Conte Junior High in Hollywood,” Mantle added. “Every Sunday night on KMET, we would make sure we were listening to Dr. Demento and his funny records.”

The question remains…

An 11-year-old winning a car in a KMPC contest in 1963.

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Los Angeles Public Library

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Listener support is vital to any radio station, and it’s clear KNX has many lifelong fans. AirTalk listeners highlighted their support for household KNX names over the decades like Bill Keene, Melinda Lee, Mike Roy and Jackie Olden.

As KNX makes changes, many are watching closely and thinking about the future of radio.

Listeners like Tommy in La Quinta are left wondering if the radio dial will be the same…

“I’m a hardcore listener, but I don't know about casual listeners [and] if they'll tune to AM,” he said.

After months of hand-wringing, Los Angeles and LA28 have come to a tentative agreement on how Olympics organizers will reimburse the city for its expenses for the 2028 Summer Games.

According to the deal, the private Olympic organizing committee will pay upfront for the estimated cost of services that are not eligible for federal reimbursement, like trash pick-up and traffic control. Under another proposal, the city would also be able to tap an LA28 contingency fund if it isn't fully repaid by the federal government for policing costs at Olympic venues.

The agreement is nearly nine months overdue and still needs approval by Mayor Karen Bass and the City Council.

The 2028 Olympics are intended to be privately financed, and an existing city agreement with LA28 states that the Olympics organizers, not L.A., will pay for extra costs for public services in support of the Games. But L.A. is the financial back-stop for the Olympics, meaning if LA28 goes in the red, taxpayers will pick up the bill.

Beyond that, the city services agreement presents another area where L.A. could incur additional unexpected expenses for hosting the Games. L.A. City Councilmember Monica Rodriguez warned LA28 CEO Reynold Hoover earlier this year that a bad deal could "bankrupt" the city.

Jacie Prieto Lopez, an LA28 spokesperson, and Paul Krekorian, who leads the city's office of major events, said in statements that the freshly inked agreement would help deliver a fiscally responsible Games.

"Mayor Bass’ priority is that the 2028 Olympic and Paralympic Games be fiscally responsible, protect taxpayers, and benefit Angelenos for decades to come. This agreement helps deliver that commitment," Krekorian said.

But the contract between the two parties doesn't fully resolve one of the biggest areas of financial risk for the city: the enormous cost of security for an event as extensive and high-profile as the summer Olympics and Paralympics.

Organizers are counting on the federal government to pay for public safety at Olympic venues that are considered part of a "national special security event." That includes costs for LAPD staffing. LA28 has not included security costs in its $7.1 billion budget — a fact that City Attorney Hydee Feldstein Soto criticized earlier this year.

The federal government has so far allocated $1 billion for security costs for the Olympics. Exactly where those federal funds will go has not yet been determined, and there's no guarantee they will cover all of L.A.'s policing costs.

To address this, city officials have also proposed an amendment to a 2021 agreement between the city and LA28. That amendment would establish that if L.A. is not reimbursed by the federal government for all its eligible expenses, it could dip into LA28's contingency fund of $270 million before the private organizing committee could use those funds for any legacy projects.

But that bucket of money will first be used for any costs that Olympics organizers still owe if they run out of revenue — meaning if the Olympics don't turn a profit, the city's access to that money will depend on how much is left for the taking.

Civil rights attorney Connie Rice, who has been tracking the city's negotiations with LA28, told LAist the agreement was a "PR document" not a deal. She pointed out that if the federal government does not pay up for security spending as expected, L.A. could be in trouble.

" It leaves the taxpayers with a GoFundMe strategy," she said.

The city services agreement lays the groundwork for more negotiations between LA28 and the city. Each venue will require its own agreement, to be negotiated by July 1, 2027. Venues in the city of L.A. include Dodger Stadium, the L.A. Convention Center, L.A. Memorial Coliseum and the Venice Beach Boardwalk.

The City Council's ad-hoc committee on the 2028 Games will meet Tuesday afternoon to vote on the agreement.