The Brief

A recent warning about the state of city finances in Los Angeles struck a dire note.

“We will need to be vigilant in how we proceed,” cautioned Matt Szabo, the city administrative officer at a Budget and Finance Committee meeting last week. “Our reserves are getting dangerously close to the ... emergency level.”

The reasons why are detailed in a financial status report Szabo released late last month. It documents precarious city finances driven by a mix of dwindling revenues and some big unexpected expenses, including the costs of responding to the L.A. wildfires.

Another major over-expenditure: civil payouts.

The city of Los Angeles is expected to pay at least $320 million in settlements and judgments this fiscal year, which ends in June, according to the financial status report. That’s more than three and a half times the money budgeted for such risks.

Liability payouts — which settle claims and lawsuits against the city for wrongdoing, including internal staff harassment, police use of force and injuries — have been a considerable expense for many years. In the current fiscal year, the city has paid more than $37 million in just two cases — the LAPD bomb squad fireworks explosion that injured more than two dozen people and displaced residents for years, as well as a shooting in which an off-duty LAPD officer killed a mentally disabled man in another county.

LAist examined city checkbook data, made available online by the city controller’s office, to analyze all payments made for liability claims since fiscal year 2018.

Here’s what we found:

• The most recent yearly budget set aside $87 million to handle such payouts, an amount that has hardly changed in eight years.
• The city was over budget just two months into this fiscal year.
• Last fiscal year, payouts exceeded the budget within seven months.
  

Why it matters

This is the second year in a row the city’s overall budget has faced financial headwinds. Last year, for the first time since the peak of the COVID-19 pandemic, overspending and low revenue led to the city’s reserve funds falling below minimum levels required by city policy. This winter, legal settlements and deferred maintenance costs drove up the city’s spending further, and those costs have continued to rise.

When the city overspends on liability payouts, money is taken from other funds, such as the general fund and reserve accounts, to cover those costs.

Making those transfers has larger implications:

• City policy is to maintain reserve funds of at least 5% of budgeted general fund receipts, and if the reserve fund goes below 2.75%, the City Council must vote and declare an “urgent economic necessity” to use the remaining funds from the Emergency Reserve Account.
• Currently, the city’s reserve fund is at 3.28%, a level Szabo described this month as “dangerously close” to emergency levels.
• If additional cost-saving measures aren’t taken, using the reserves to solve remaining overspending would reduce levels to 2.22%.

What we know about liability claims

The Los Angeles Police Department has the highest liability payouts of any city department, with $100 million in claims in fiscal year 2024, according to an LAist analysis of city checkbook data. The department with the next highest amount in payouts was public works, with $45 million in claims across the street services, sanitation and engineering bureaus.

An additional $106 million in fiscal year 2024 liability payouts reviewed by LAist were not associated with any specific department in city data.

“At the end of the day, every dollar that we spend on lawsuits is a dollar that we're not spending on making our neighborhoods safer,” Councilmember Katy Yaroslavsky, chair of the Budget and Finance Committee, told LAist. “Whether it's LAPD or sidewalks or trip-and-falls, we really have to get ahead of the problem instead of paying for it much bigger on the back end.”

Yaroslavsky said the city needs to do more realistic and transparent budgeting while addressing the root causes of liability payouts. She said the city is “focused on solutions that reduce risk, improve public safety and protect city resources.” When it comes to the Police Department, Yaroslavsky said reforms include expanding the use of alternative response teams for mental health crises, as well as improving training and accountability practices.

City Controller Kenneth Mejia also shared concerns with LAist about addressing the root issues that lead to liability payouts, saying that if current trends continue, decreases in revenue combined with overspending could extend a citywide hiring freeze and cause service reductions. The city began its hiring freeze in January 2024, followed by cuts to over 1,700 positions last July, according to the controller’s office.

“This is the second year in a row where we budgeted high revenue amounts, and we're not reaching that amount,” Mejia said. “The city really needs to budget better, more conservatively and more realistically.”

L.A. Mayor Karen Bass, who proposes and signs the budget, did not respond to requests for comment.

Details of the payouts

The following accounts of the city's largest liability payments from fiscal year 2024 are based on court and federal documents. 

United States ex rel. Mei Ling v. City of L.A. — $38,659,715.21

A settlement was reached between the city and Mei Ling after what she claims was years of discrimination because of her disability, preventing her from finding affordable, accessible housing.

Tammy Murillo v. City of Los Angeles, et al. — $25,097,461.25

A district court jury found the city and two police officers liable for excessive force and battery, civil rights violations and negligence in the killing of Jesse Murillo, who was a 32-year-old Navy veteran.

Ismael Soto Luna v. City of Los Angeles, et al. — $10,500,000 (An additional $10,500,000 was paid in 2025.)

A settlement was reached between the city and Ismael Soto Luna after an L.A. County jury found the city liable for a streetlight in dangerous condition causing harm to Soto. The jury also found that this risk was foreseeable by the city, and the city had enough time to protect against such an incident.

Ruben Martinez et al v. City of Los Angeles et al — $8,000,000

A settlement was reached between the city and Ruben Martinez after prosecutors agreed that Martinez was wrongfully imprisoned for 12 years for five robberies.

Malcolm Thomas v. City of Los Angeles, et al. — $7,885,000

A settlement was reached between the city and Malcolm Thomas after what he claims was discrimination based on disability and retaliation while he served as a police officer and instructor at the Los Angeles Police Academy.

And here are the notable payments so far in 2025.

BD Impotex, LLC v. City of Los Angeles — $20,000,000

A settlement was reached between the city and residents of South L.A. after the detonation of illegal fireworks by the LAPD bomb squad. The explosion injured 27 people, including 18 civilians, and caused severe damage to homes and vehicles, according to a federal Bureau of Alcohol, Tobacco, Firearms and Explosives report, causing some residents to be displaced.

Paula French, et al. v. City of Los Angeles, et al. — $17,700,000

A district court jury found that the city was liable for use of excessive force by an LAPD officer that caused the death of a mentally disabled man outside of a Costco in Corona and severely injured his parents.

How does approving the budget work?

Most city budget negotiations happen behind closed doors. Starting in the early fall, the L.A. mayor works with city department heads to figure out what the budget should look like. The mayor outlines her priorities, and department heads submit specific requests for consideration.

The mayor releases the official budget proposal in April. Then the City Council’s budget committee holds a series of hearings to discuss the proposal and listen to feedback from the public. The committee submits recommendations for changes.

The full City Council then has to vote on the proposed budget and the recommended changes. The approved budget takes effect on July 1, running through June 30 of the following year — this is what’s known as a “fiscal year.” Each fiscal year is referred to based on the year the budget ends. For example, the current budget year is 2025. It runs from July 1, 2024, to June 30, 2025.

Keep an eye on your local government

The best way to keep tabs on your local government is by attending public meetings for your city council or local boards. Here are a few tips to get you started.

• Find meeting schedules and agendas: City councils usually meet at least twice a month, although larger ones may meet weekly. Committees and boards tend to meet less often, typically once a month. You can find the schedule and meeting agenda on your local government’s website, or posted physically at your local city hall. Find more tips here.
  
• Learn the jargon: Closed session, consent calendars and more! We have definitions for commonly used terms here.
  
• How to give public comment: Every public meeting allows community members to give comment, whether or not it’s about something on the agenda. The meeting agenda will have specific instructions for giving public comment. Review more details here.
  

LAist’s Brianna Lee contributed to this report.

A new free record shop for survivors of last year’s Eaton and Palisades fires is celebrating with a grand opening party Saturday night.

After losing his home in the Eaton Fire, Brandon Jay founded Altadena Musicians to get instruments back into the hands of musicians who lost their gear in fires.

Now he’s doing that with vinyl records, too.

“We want to be here to help replace those items and support music in people’s lives that can’t necessarily afford it right now because they’re saving all their pennies just to live and also just to rebuild their homes,” Jay told LAist.

Jay says they’ve seen roughly 3,000 records donated so far. Now they have a dedicated space on Lincoln Avenue where fire survivors can sign up for time slots and shop for up to 10 records a month.

“It’s a really lovely distraction but it kind of keeps me going as well just to know that we’re trying to build something great for the community and keep us all moving forward,” Jay said.

The store will carry copies of the benefit album, Gimme Shelter: Songs for LA Fire Relief. The compilation features cover art by Shepard Fairey and L.A. specific tracks from artists like Elliott Smith ("Angeles" of course), Norah Jones, The Flaming Lips, as well as a cover of "Burning Down the House" by Talking Heads performed by Jay and about 50 other fire-impacted musicians.

Reggae star Ziggy Marley has spent decades carrying one of music’s most celebrated legacies. But until now, he had never written a song directly about his father, Bob Marley.

That’s changed with “Many Mourn for Bob,” a track on Marley’s ninth solo album Brightside, his first release recorded in his new studio in North Hollywood.

Marley was just 12 when his father died of cancer in 1981. Now 57, Marley says the song instinctually emerged after years of life experience and producing the biopic One Love, which revisited his father’s struggles like an assassination attempt amid political violence in Jamaica.

“He went through some things that was really tough on a human being – and just understanding him in that light is to have a little bit more emotional, deeper connection to his experience,” Marley said in an interview at his studio.

Searching for the bright side

The deeply personal track is part of a splashy return for Marley, who's touring behind Brightside and will perform at the Hollywood Bowl on June 21.

The new album blends political themes, optimism and musical experimentation.

Its lead single, “Racism Is a Killa,” featuring Big Boi, pairs the heavy topic with an upbeat groove that he hopes will make the song more accessible to young people.

“We just wanna come out straightforward, like I never want to come out tiptoeing,” Marley said. “I want to say something that can catch your ears or catch your thoughts.”

That tension between darkness and hope runs throughout Brightside. Marley described the album as a reflection on enduring difficult periods – from the pandemic to the Los Angeles wildfires – without losing sight of optimism.

“Sometimes we get lost in that so much that we don't realize that there is always a bright side,” Marley said.

The 432 Hz experiment

The album also experiments sonically: Marley recorded Brightside using 432 hertz tuning instead of the standard 440 hertz in most mainstream music. Advocates of 432 hertz believe it produces a warmer, more meditative sound better synced to the natural world. (You can hear the difference for yourself here.)

“It's a lower musical frequency, but it's a higher frequency in a next sense of your spirituality and emotion,” he said. “So even though the numbers go down, the frequency actually go up.”

Marley sees the move as part of a larger search for new creative approaches.

“I'm very open-minded and always trying to evolve and just experiment with life and music,” Marley said.

The Grammy winner, who joins James Blake and Ed O’Brien of Radiohead as the most high-profile artists to record at the lower frequency, floated the idea of a larger movement among artists.

“Let's just have a revolution in the music industry,” he said. “Let's change the frequency.”

Building a dream

Marley works out of his Rebel Lion Studio in North Hollywood, its name a nod to his 2018 album Rebellion Rises while also a play on the word “rebellion.”

He described the studio as an extension of the independent spirit his father built with Tuff Gong Studio in Jamaica.

Musicians set up for rehearsal ahead of the next leg of Ziggy Marley's tour.

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“My father had a dream, and I had a dream too,” Marley said.

Like with Tuff Gong, Marley also plans to expand the studio operation to include vinyl pressing as records continue their resurgence in the streaming era.

“There’s always gonna be a vinyl present going on,” Marley said. “A thousand years from now, people that we're still gonna need vinyl records to listen to music.”

Ziggy Marley in the hallway of his new studio in North Hollywood.

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For years, Marley said, he worked out of smaller home setups and rented facilities before deciding to build a larger permanent space in L.A.

Marley said the city has become central to his own creative evolution over the last two decades of living and working here.

Drawn initially by music, friends and the city's small but tight-knit Jamaican community, he says being surrounded by creatives from different backgrounds helped push his artistry in new directions.

“I left my safety and my community, my tribe, and come out by myself to L.A.,” he said. “But it's a great experience. It really helped my growth as a human being being here.”

What’s next

Fresh off the release of Brightside, Marley says he’s already working on another album – a notably quicker turnaround since his last album, the family-music release More Family Time in 2020,

“We're doing back to back,” he said.

Ziggy Marley will be performing at the Hollywood Bowl on June 21 as part of a tour supporting his new album Brightside.

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He’s also busy writing a children’s book based on his feel-good hit anthem “True to Myself” and eyeing opportunities in front – or behind the camera – inspired by his time working on One Love and making the video for “Racism Is A Killa.”

“Same philosophy, same message, but within visuals, you know?” Marley said excitedly. “I want to create some stories and try out. I feel it coming. I can feel it.”

A City Council committee voted Friday to shelve a proposed ballot measure aimed at cutting L.A.'s “mansion tax” nearly in half.

The ad hoc committee on Measure ULA voted 2-1 to set aside a proposal by Councilmembers John Lee and Marqueece Harris-Dawson that would have asked voters in November to reduce the ULA transfer tax rate for multifamily and mixed-use properties to somewhere between 2% and 3.5%, down from the current rate of up to 5.5%.

However, the ballot measure proposal was also referred to the City Council’s rules, elections, and intergovernmental relations committee, which could still choose to move it forward.

Instead, the ad hoc committee advanced a narrower pilot program that would reduce the property transfer tax only for newly built affordable housing projects.

The pilot program won't need voter approval in the form of a ballot measure. Committee Chair Ysabel Jurado, who introduced the substitute language, said she believes the city should avoid a ULA ballot measure because it’s still too early to evaluate the measure’s long-term effects.

“ I'm against going to the ballot, but I'm for making fixes that make this better,” Jurado said.

Voters will see a separate proposal on their ballots by the Howard Jarvis Taxpayers Association to effectively repeal Measure ULA.

If the L.A. City Council does not approve reforming the measure, the only decision on the ballot in November may be whether to keep the mansion tax in its current form or end it.

About the mansion tax

L.A. voters approved Measure ULA in 2022 to fund affordable housing and homelessness prevention. The measure taxes real estate sales over about $5 million. Since taking effect in April 2023, ULA has raised just over $1.1 billion from 1,633 real estate transactions, according to the city’s housing department.

The city projects it will generate about $500 million in the coming fiscal year — about half of what proponents initially promised. It has funded about 800 new affordable units and helped stabilize thousands of renters facing eviction, according to the housing department.

But critics say the tax has suppressed housing development. Several studies link the tax to a slowdown in apartment construction in Los Angeles, but ULA supporters say high interest rates and broader economic conditions are to blame.

The City Council's ad hoc committee on Measure ULA was formed earlier this year to study how the measure is working and develop potential reforms. That work took on more urgency inside L.A. city hall after the Howard Jarvis Taxpayers Association qualified a statewide ballot measure for November that would effectively repeal Measure ULA entirely.

Joe Donlin, director of the United to House LA coalition, which campaigned for the original measure, said the City Council committee made the right call by rejecting broader exemptions.

“By not taking up the extreme calls for broad, 15-year waivers that could cost the program about a third of its revenue, the committee acknowledged that ULA is working,” Donlin said in a statement.

A separate group of housing developers, union workers and advocacy groups calling itself the “Mend It, Don’t End It” coalition has been urging city hall to make changes to ULA. On Friday, the group said it supports the measure, but believes targeted reforms are still needed.

“Independent research shows that Measure ULA has slowed housing production in Los Angeles at a time when we need more housing, not less,” said Melanie Mendoza, a coalition spokesperson.

What the data show

The debate over ULA's impact played out in the committee room Friday morning. The city's chief legislative analyst reviewed seven independent studies on ULA’s impact. Three of those studies concluded ULA had suppressed housing production and reduced property tax revenues, while four found no meaningful negative impact.

Before ULA took effect, Los Angeles collected about $22 million a month in transfer tax. After that, it dropped to about $13 million. But city legislative analyst Henry Flatt told the committee a similar decline happened in cities without the tax, including Glendale, Long Beach, Pasadena and Santa Clarita.

“We are not currently convinced that Measure ULA has had an extremely negative impact on general fund revenues,” Flatt told the committee.

The county assessor's office read the same period differently. Scott Thornberry, an assistant assessor with L.A. County, told the committee that commercial and industrial property sales are falling in the city but not elsewhere in the county.

“We are seeing, we believe, a trend line of impact to property tax revenue growth in the city of L.A. specifically," Thornberry said.

What the committee did

Instead of the ballot measure, the committee voted to develop a five-year pilot program cutting the ULA tax to 1.5% for newly constructed affordable housing projects that meet specific requirements.

Lee, whose ballot measure was replaced with language advancing the pilot program, said he hadn't seen the substitute prior to Friday’s meeting and voted against it.

“This was just placed in front of me,” he said. Lee objected to a provision in the substitute recommendations calling for $30 million in new spending on homelessness support.

“Without knowing where this money's coming from, I'm going to have to vote no,” he said.

Lee told LAist he supports stronger oversight and technical improvements to Measure ULA, but believes a ballot measure is the right approach.

“Voters deserve the opportunity to consider targeted changes that would preserve the intent of the measure while addressing its unintended impacts on housing production and real estate activity in Los Angeles,” the councilmember said, in a statement.

Friday's meeting was the committee's final scheduled hearing. The committee, which is set to dissolve June 1, also voted to advance a narrower nonprofit tax refund limited to organizations that can prove all sale proceeds went directly to affordable housing.

The committee continued a separate motion on fire exemptions for Palisades fire victims, which will be heard by another council committee. A motion to loosen eligibility rules for the ULA Citizens Oversight Committee was noted and filed.

Councilmember Imelda Padilla, who introduced several of the committee's motions, said the process had been guided by a commitment to protect the measure.

"My goal has always been to listen carefully, bring people into the conversation, and protect ULA while honoring the voters' intent," she said at Friday’s meeting.

In her closing remarks, Jurado reflected on the three-member committee’s past work.

“We released $14 million in rental assistance to the most vulnerable Angelenos and $300 million for affordable housing,” she said. “We did in six or seven meetings what others couldn't do in five years.”

The ad hoc committee's recommendations now move to the full City Council.

Harris-Dawson and Lee’s ballot measure motion will be considered by the City Council’s rules committee at a later date, officials said.

Monsterpalooza, the annual movie-monster bash for horror fans, returns to the Pasadena Convention Center this weekend, starting Friday night (May 29) and lasting through Sunday.

What to expect

Now in its 18th year, devotees can rub elbows with legendary beastie creators, browse hundreds of vendors who traffic in the weird and unsettling, and marvel at practical effects that’ll make your flesh creep.

Dozens of panels and presentations are scheduled, including a deep-dive into the 95th anniversary of the Dracula and Frankenstein movies by writer Julian David Stone.

Writer Julian David Stone gives a presentation at a past Monsterpalooza event.

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Stone said that the two classic movies have left a lasting impact.

“Dracula is a movie about supernatural horror..... and Frankenstein is about technological or man-made horror," he said. "You can just trace those two themes all the way forward to this past year with Sinners and Megan 2.0."

Richard Redlefsen's Armageddon Rat at the PPI Booth at a past Monsterpalooza.

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Stone first attended the convention in 2008, returning over the years as a fan, spectator and presenter.

“It’s just a terrific convention that celebrates all things horror,” Stone said. “There’s a lot of celebrities you can meet who were in these horror films and you can get pictures with them." He added that he’ll never forget when he met Carla Laemmle in 2010 — the last living cast member of the original 1931 Dracula.

Mike Mekash and Chris Nelson re-created Twisty the Clown on Dan Gilbert at the PPI Booth at a past Monsterpalooza.

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Who's attending

If you’re jonesing to be photographed with high-profile entertainers (expect a fee for many), this year's event has a line-up that includes musician Alice Cooper, actress Lin Shaye from the Insidious movie franchise and David Howard Thornton, who plays Art the Clown in the popular Terrifier movie series.

Cosplay and crazy costumes are encouraged, although a T-shirt celebrating a classic horror movie will also do. Just come ready to adore all things that gnaw and gash.