The Brief

Los Angeles is facing a possible budget gap of up to $400 million, which could prompt city leaders to cut vacant jobs in departments already trying to plug staffing holes.

The City Administrative Officer's report found overspending of $297 million, and General Fund revenues — which pay for many city services — are about $158 million short of what was expected in tax revenues.

The report recommends that city departments cut their “non-critical” vacant jobs to free up some funding, which could have long-term impacts on city services.

Breaking down the budget

The largest area of overspending went toward salaries for the Los Angeles Police Department, according to the report.

The costs are connected to the four-year contract the Los Angeles Police Protective League reached with the city last August. The deal was expected to increase spending by $97 million total for this fiscal year — $80 million for salaries and $17 million for overtime.

“We sort of expected that the LAPD would go over because of the new salaries and the new contract,” Controller Kenneth Mejia told LAist. “But, even before this year, generally the LAPD goes over their original adopted operating budget.”

The amount of money the city has to pay out to settle lawsuits is also much higher than expected. Mejia said claims jumped 100% in the last fiscal year alone.

As for General Fund revenues, the report states the city could recover some of that $158 million.

However, the largest gaps came from taxes.

Business taxes are $32 million under what was planned for, and sales taxes are $18 million under. According to the report, this is partly because of the dual Hollywood strikes and a rise in inflation.

The transient occupancy tax, which is a 14% charge for all properties where guests stay within the city for 30 days or less, is estimated to be $15 million below expectations. The report lays the blame on lower international tourism spending related to China’s economic slowdown.

Documentary transfer taxes — which includes proceeds from Measure ULA, the added tax on properties that sell for $5 million or more — have fallen short by $25 million shortfall because of higher interest rates cooling the housing market, according to the report.

Overall, the city is facing a projected budget gap between $350 million and $400 million for the next fiscal year, which starts in July.

How to address it

Most city departments have actually been generating “significant” budget surpluses because of their high vacancy rates. About 1 in 6 city jobs are unfilled, according to the controller’s office.

However, the report recommends the city take immediate steps to reduce spending, including getting rid of “all non-critical vacant positions.”

The LAPD, the fire department, correctional nurses, and public works are considered critical and would likely not be affected.

“The people who trim the trees, the people who clean the animals’ cages, the people who do the accounting, the people that are working throughout the city in recreation and parks — those folks are not critical under these definitions,” chief deputy controller Rick Cole told LAist.

Cole said those services may not seem critical at first, but after a while, the cages will get dirty, the accounting will pile up, and the grass in public parks could get completely out of hand.

He added that cuts would also likely affect the city’s aging infrastructure, training programs, and facilities.

“These things don't get fixed overnight,” Cole said. “They don't get fixed by a hiring freeze. They get fixed by a long-term commitment to budgetary reform.”

What’s next 

L.A. Mayor Karen Bass signed the city's $13-billion budget last May, and it went into effect on July 1.

The City Administrative Officer will hold joint meetings with Bass’ team late next month to check in with city departments about their funding priorities.

Typically, the mayor’s office releases the budget proposal in April. It’s then reviewed by the L.A. City Council, and if adopted, goes back to the mayor’s desk for final approval.

For the last three years, the record store and music venue Healing Force of the Universe has been operating on a sleepy street corner not far from Pasadena City College. Nearby businesses include a shoe repair store, a nail salon and several auto shops.

“We're kind of in a dead corner,” owner Austin Manuel said. “No offense if anybody lives here, but not a very foot-trafficked area, kind of a hard place to have a store.”

In spite of the location, Manuel said Healing Force has become a home away from home for musicians and music fans. One of them is Bobby Bradford, a jazz trumpet legend who lost his house and personal archive in the Eaton Fire. He performs regularly at the venue. (Healing Force has also partnered with LAist on fire recovery events.)

Its current location is set to close this month, but Manuel and his team are already raising funds to cover a move to another space: G-Son Studios in Atwater Village. The repurposed ballroom was the Beastie Boys' home base when they recorded their classic albums Check Your Head and Ill Communication. Run-DMC and Biz Markie stopped by at one point, and Beck also laid down tracks for his album Odelay there.

Inside Healing Force's space in Pasadena.

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The vibe

Healing Force sells records, of course, but these days it’s more of a nighttime performance space. Manuel said he wants people to feel comfortable striking up conversations after a show.

“I grew up in the church in the South, and I was like, ‘How do I design this so that it feels like a Southern church lady could come in here and feel welcome?’" Manuel said. “ I didn't want it to be too cool.  I wanted it to feel kind of suburban in a way.”

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Though the name might call to mind a cult slogan — and Manuel said they lean into that aesthetic on purpose — it’s actually a reference to the 1970 album Music Is the Healing Force of the Universe by saxophonist Albert Ayler.

At the venue, “people can kind of get … into a meditative zone,” Manuel said. “After the [January 2025] fires, it felt so good to come back together in this room and feel the healing of community.”

Healing Force's stage setup.

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The performances

The shows Healing Force puts on share a common thread: They’re meant to promote peace and relaxation, as well as deep, careful listening on the hi-fi sound system. But they’re an eclectic mix of genres. On one night, you might see L.A. spiritual jazz band Phi-Psonics, who turned a residency at the venue into a live album, Expanding to One.

On another night, you might catch a spaced-out electronic set, an up-and-coming singer-songwriter or a group of session musicians who’ve played with the likes of Paul Simon, Elton John and Lucinda Williams.

About the fundraiser

With the new space on Glendale Boulevard, Manuel said, Healing Force would triple its capacity for concerts, get a bar space and be closer to other venues in Northeast L.A.

“If 1,000 people gave $25, we would get there,” Manuel said – though he also said most people have been giving more.

You can read more about the fundraiser and donate at Healing Force’s GoFundMe.

See the Pasadena space before it closes

The venue is still open at 1200 E. Walnut Street and is holding events through this Halloween weekend. You can see their events calendar on their website.

The racist DNA of Jim Crow discrimination may be embedded in your housing documents.

The language in housing documents that restricts sale or use of a property only to a person of the white race is called a “restrictive covenant,” and in California the practice goes back to the 19th century and continued into the mid-20th century. While housing discrimination persists, the practice was found unconstitutional in 1948.

California counties are reporting mixed progress in meeting the demands of a 2021 law to excise the language from property records.

According to Sylvia Manzo, deputy recorder in the Orange County Clerk-Recorder’s office, the county finished the job in March of this year, removing racist language from more than 27,000 property documents with the help of computer software.

This 1924 property document from Bakersfield includes racist language limiting use of the property in question to people of "the white or Caucasian race."

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L.A. County is far from done. It says that with the help of an outside company hired in 2024, 50 million pages will be examined yearly, which would take about 10 years to finish the job.

Public agencies could use the public’s help.

Language examples

Here’s a 1924 example from a property in Bakersfield. The text reads, “That the lands herein conveyed shall never, at any time, be sold to or rented to or occupied by any person not of the white or Caucasian race.”

Or this language from a 1936 document relating to a Costa Mesa property: “That said premises shall not be sold, conveyed, rented, or leased to, or occupied by any person of African, Mexican, or Asiatic descent.”

How to get it taken out

The Restrictive Covenant Modification Form is at the heart of the effort to remove the racist language from housing documents. Each county has its own process. Some charge a fee; others don’t. Some require a notary certification for the signature; others don’t.

L.A. County:

Registrar-Recorder officials recommend these steps:

• Highlight or underline the unlawful provision on the recorded document
• Complete the Restrictive Covenant Modification Form
• Submit the form and the recorded document by email: RCM@rrcc.lacounty.gov or in person at the Norwalk headquarters at 12400 Imperial Highway in Norwalk
• Mail instructions are here.

Orange County:

The Orange County spokesperson says there may be some properties not caught by its software and urges the public to report them. Here’s the form

Riverside County:

Here’s the Riverside County form

San Bernardino County:

Here’s the San Bernardino County form

San Diego County:

Here’s the San Diego County form

Santa Barbara County:

Here’s the Santa Barbara County form

Ignoring the racist language in property documents, some say, reinforces the legacy of segregation, while taking steps to remove restrictive covenant language is a way individuals and organizations can repudiate policies that sought to discriminate.