Topline:
Los Angeles Mayor Karen Bass has signed a $13 billion budget that includes more than 600 layoffs, and closes a nearly billion-dollar deficit brought on by increased expenses and lowered revenues.
Deal with City Council: In a statement, Bass said that a deal has been struck with City Council members to restore LAPD hiring levels. The budget proposal that was sent to her desk included the reduction of 240 police officers, halving the number of planned hirings.
Why now: The budget closes a near-billion-dollar deficit brought on by increased expenses and lowered revenues, according to city authorities.
Go deeper... for more details on the city budget.
Los Angeles Mayor Karen Bass has signed a $13 billion budget that includes hundreds of layoffs, cuts to city services, and closes a nearly billion-dollar deficit brought on by increased expenses and lowered revenues.
In a statement released Saturday, Bass said a deal struck with City Council members would restore LAPD hiring levels. The budget proposal that was sent to her desk included the reduction of 240 police officers, halving the number of planned hirings.
"Council leadership will identify funds for an additional 240 recruits within 90 days. The money will be used after LAPD fulfills hiring 240 officers," the statement reads.
The budget is for the fiscal year that starts July 1.
Other highlights:
- The budget reduces by 10% — or $10 million — funding for the mayor’s signature Inside Safe program, which seeks to provide temporary housing and services for people on the streets. Part of the cut calls for double instead of single occupancy for people who accept shelter.
- The budget eliminates the mayor’s plan to create street medicine teams at the Fire Department, for a savings of $12 million. The department’s budget will still be $76 million higher than last year’s, allowing fire officials to hire more firefighters and buy new fire trucks. The 9% increase in the fire budget is the highest among departments.
- The budget increases parking meter fees — a move expected to raise about $14 million a year.
- The budget increases funding for unarmed response teams by $14 million. The teams respond to non-violent, non-urgent calls involving individuals experiencing mental health crisis, substance abuse crisis, and homelessness. They’re made up of mental health professionals.
- The budget preserves the Climate Emergency Mobilization Office, which Bass had initially proposed be eliminated.
- The budget restores funding for the Hollyhock House, Frank Lloyd Wright’s architectural landmark in Barnsdall Art Park in East Hollywood.
- The budget creates a new Bureau of Homelessness Oversight, an attempt to track how L.A. is spending billions of dollars on people who are unhoused.
Layoffs = reduced services
The proposed layoffs would affect several departments, including sanitation, street services and transportation.
Councilmember Bob Blumenfield said after the City Council approved the budget last month that services would inevitably suffer.
“You can’t take a billion dollars out of the budget and not have reduced services,” he said. “I don’t want to put lipstick on this situation.”
How we got here
One reason L.A. is in dire financial straits is because of generous contracts city officials signed with labor union leaders last year. The wage added about $250 million to the budget.
Other factors include soaring legal liability costs and lower-than-expected tax revenues. 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.
There are currently about 38,000 city positions, not counting the departments of water and power, harbor and airport, some of which are vacant. In all, the city employs 32,405 people.
