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.

This story first appeared on The LA Local.

Since 1977, Richard Santillan has been to every Opening Day game at Dodger Stadium. 

“The tradition goes from my father, to me, to my children and grandchildren. Some of my best memories are with my father and children here at Dodger Stadium,” Santillan told The LA Local, smiling under the shade of palm trees near the entrance to the ballpark Wednesday morning. He was there to protest the team less than 24 hours before Opening Day.

Santillan, like countless other loyal Dodgers fans, is grappling with his fan identity over the team’s decision to accept an invitation to the White House and owner Mark Walter’s ties to ICE detention facilities.

More than 30 people joined Santillan on Wednesday morning for a press conference held near 1000 Vin Scully Drive to convey a message directly to the team. 

“We are demanding the Dodgers stop participating in funding of inhumane treatment of families and do not go to the White House to celebrate with the criminal in chief,” Evelyn Escatiola told the crowd. “Together, we have the power to make a change.”

Escatiola, a former dean of East Los Angeles College and longtime community organizer, urged fans to flex their economic power by “letting the Dodgers know that we do not support repression.”

Jorge “Coqui” Rodriguez, a lifelong Dodgers fan, spoke to the crowd and called on Dodgers ownership to divest from immigration detention centers owned and operated by GEO Group and CoreCivic.

Jorge Coqui H Rodriguez speaks at a press conference outside Dodger Stadium on March 25, 2026, to demand the Dodgers not to visit the White House following their 2025 World Series win.

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J.W. Hendricks

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The LA Local

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In a phone interview a day before the protest, Rodriguez told The LA Local he did not want the Dodgers using his “cheve” or beer money to fund detention centers. 

“They can’t take our parking money, our cacahuate money, our cheve money, our Dodger Dog money and invest those funds into corporations that are imprisoning people. It’s wrong,” Rodriguez said. 

Rodriguez considers the Dodgers one of the most racially diverse teams and said the players need to support fans at a time when heightened immigration enforcement has become more common across L.A.

The team’s 2025’s visit to the White House drew ire from the largely Latino fan base, citing the Trump administration’s ongoing attacks on immigrants. 

In June, the team came under further scrutiny when rumors swirled online that federal immigration agents were using the stadium’s parking, which immigration authorities later denied in statements posted on social media accounts.

The team again came under fire after not releasing a statement on the impacts of ICE raids on its mostly Latino fan base at the height of immigration enforcement last summer. The team later agreed to invest $1 million to support families affected by immigration enforcement.

When he learned the Dodgers were pledging only $1 million to families in need, Rodriguez called the amount a  “slap in the face.” 

“These guys just bought the Lakers for billions of dollars and they give a million dollars to fight for legal services? That’s a joke,” Rodriguez said. “They need to have a moral backbone and not be investing in those companies.”

According to reporting from the Los Angeles Times, former Dodgers pitcher Clayton Kershawsaid last week that he is looking forward to the trip.

“I went when President [Joe] Biden was in office. I’m going to go when President [Donald] Trump is in office,” Kershaw said. “To me, it’s just about getting to go to the White House. You don’t get that opportunity every day, so I’m excited to go.”

The Dodgers have yet to announce when their planned visit will take place. 

Santillan sometimes laments his decision to give up his season tickets in protest of the team. His connection to the stadium and the memories he has made there with family and friends will last a lifetime, he said. On Thursday, he will uphold his tradition and be there for the first pitch of the season, but with a heavy heart.

“It’s a family tradition, but the Dodgers have a lot of work to do,” he said.

A local favorite mom-and-pop bookshop in Eagle Rock is facing displacement due to a steep rent hike. The owners say theirs is just one of several small businesses along Eagle Rock Boulevard struggling to keep up with lease increases.

Over the past 19 years, many in the neighborhood have come to love READ Books for its eclectic collection of used titles and shop dog Florence.

Co-owner Jeremy Kaplan said it’s been a delight to grow with the community over the years.

“Like seeing kids come back in, who were in grade school and now they’re in college,” Kaplan said.

But the building where Kaplan and wife Debbie rent was recently sold, and the rent increased by more than 130% to $2,805 a month, Kaplan said. He told LAist it was an increase his small business simply could not absorb.

Kaplan said he originally was given 30 days notice of the rent increase. After some research, assistance from Councilmember Ysabel Jurado’s office and some pro-bono legal help, Kaplan said he pushed back and got the 90-day notice he’s afforded by state law.

California Senate Bill 1103 requires landlords to give businesses with five or less employees 90 days’ notice for rent increases exceeding 10%, among other protections.

Systems Real Estate, the property management company, did not immediately respond to LAist’s request for comment.

What can small businesses do? 

Nadia Segura, directing attorney of the Small Business Program at pro bono legal aid non-profit Bet Tzedek said California law does not currently allow for rent control for commercial tenancies.

Outside of the protections under SB 1103, Segura said small businesses like READ Books don’t have much other recourse. And even then, commercial landlords are not required to inform their tenants of their protections under the law.

“There’s still a lot of people that don’t know about SB 1103. And then it’s very sad that they tell them they have these rent increases and within a month they have to leave,” Segura said.

She said her group is seeing steep rent hikes like this for commercial tenants across the city.

“We are seeing this even more with the World Cup coming up, the Olympics coming up. And I will say it was very sad to see that also after the wildfires,” Segura said.

Part of Bet Tzedek’s ongoing work is to advocate for small businesses, working with landlords who are increasing rents to see if they are willing to give business owners longer leases that lock in rents.

What’s next 

After READ Books posted about their situation on social media, commenters chimed in to express their outrage and love for the little shop.

While he looks for a new spot, Kaplan says he’s forming a coalition of local businesses and activist groups to see what can be done to help other small businesses facing similar displacement. He wants to address the displacement issue for businesses like his, which have made Eagle Rock the distinctive neighborhood that it is today.

Owl Talk, a longtime Eagle Rock staple selling clothing and accessories in a unit in the same building as READ Books, is facing a “more than double” rent increase, according to a post on their Instagram account.

Kaplan said he’s been in touch with the office of state Assemblywoman Jessica Caloza and wants to explore the possibility of introducing legislation to set up protections for small businesses like his, including rent-control measures or a vacancy tax for landlords. Kaplan said he also reached out to the office of state Sen. Maria Durazo.

By his count, Kaplan said there are about a dozen businesses within surrounding blocks that are at risk of closing their doors or have shuttered due to rent increases or other struggles.

When READ Books was founded during the Great Recession, Kaplan said he knew it was a longshot to open a bookstore at the same time so many were struggling to stay in business.

“It was kind of interesting to be doing something that neighborhoods needed. That was important to me growing up, that was important to my children, that was important to my wife growing up,” Kaplan said.

“And then somebody comes in and says, ‘We’re gonna over double your rent.”

Topline:

Frozen budget: Most of the city’s Bureau of Street Lighting budget comes from an assessment that people who own property illuminated by lights pay on their county property tax bill. The amount people pay depends on the kind of property they own and how much they benefit from lighting. A typical single-family home currently pays $53 annually, and in total, the assessments bring in about $45 million annually for the city to repair and maintain streetlights. Changing the amount the Bureau of Street Lighting gets from the assessment requires a vote among property owners who benefit from the lights.

Ballots: L.A. City Council’s vote gives city staff the green light to prepare and send out those ballots. Miguel Sangalang, who oversees the bureau, said at a committee meeting earlier this month that he expects to send out ballots by April 17. Notices about the ballots will be sent out prior to the ballots themselves.

Near unanimous vote: L.A. City Councilmember Monica Rodriguez was the only “No” vote Tuesday, saying she wanted to see a more current strategic plan for the bureau. Sangalang said the bureau developed a plan in 2022 that lays out how money will be spent. Councilmember Imelda Padilla was absent for the vote.

Vote count: Votes will be weighted according to the assessment amount. Basically, the more you’re asked to pay yearly to maintain streetlights, the more your vote will count. Ballots received before June 2 will be tabulated by the L.A. City Clerk.

How much more money: According to a report, the amount needed in assessments from property owners to meet the repair and maintenance needs of the city’s streetlighting in the next fiscal year is nearly $112 million.

Use of the money: Sangalang said at a March 11 committee meeting that the extra funds would be used to double the number of staff to handle repairs and procure solar streetlights, which don’t face the threat of copper wire theft. That would all potentially reduce the time it takes to repair simple fixes down to a week. Currently, city residents wait for months to see broken streetlights repaired. The assessment would come with a three-year auditing mechanism.