The Brief

A stretch of Highway 1 in Big Sur is closed indefinitely after the southbound lane eroded during last weekend's rainstorm, bringing uncertainty to the communities that rely on the road for transportation.

As Caltrans works to repair the road, which is closed from Limekiln State Park to Palo Colorado in Monterey County, the agency is coordinating convoys for residents and essential workers to enter and exit the area for food and supplies. The state is now working on a temporary fix that would allow residents and visitors to pass using the structurally stable northbound lane of traffic.

It's one of several closures along this stretch of Highway 1 in recent years, as slides during the rainy season wash rocks down.

That's because the area's mountainous terrain and steep cliffs — the very thing that makes the area a world-famous road trip destination — are what makes the road so prone to rapid erosion, or slip-outs.

How geology explains the slip-outs

It might not have crossed your mind when you're driving on that part of Highway 1, but the road was built on highly unstable ground, full of faults and fractures in the ground that leave the area prone to rockslides, especially after heavy rainfall.

In short, the Big Sur coastline is "a road builder's nightmare," said Dick Norris, marine geologist at University of California San Diego's Scripps Institution of Oceanography.

The Big Sur coast.

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According to Norris, much of Highway 1 was built downhill from the location of previous rockslides — and once a slide has happened, it's more likely to recur.

"I think that probably many of the current slides are old slides that are being reactivated," Norris said. "Then of course, the material that the roadbed is built on is oftentimes an old slide deposit."

As we've seen in the last several years, this unstable soil can lead to intensive, and often costly, repairs.

"The ideal thing I suppose would be to have the road far inland from where it is: instead of on the cliff, farther up, in towards the interior," Norris said. "As we know, the whole point about why Big Sur is so beautiful is that it's so bloody steep. And the steepness reflects both the active erosion that is going on there all the time, and then, of course, a lot of that erosion is happening through these big slides."

The composition of these rocks is similar to much of the California coast — though Norris, who's done field work in Big Sur, said the region is especially affected by slides since closing the often-unstable Highway 1 can strand residents.

This unstable terrain across the region leads to something like a long-term game of Whac-A-Mole — once one segment of Highway 1 is fixed, another section inevitably erodes before long.

A section of California's famed Highway 1 collapsed into the ocean following heavy rains over the weekend.

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What workers do after a collapse

The first step for engineers after any slip-out or slide occurs: assessing the damage.

Caltrans workers first went out to survey the collapsed highway on March 31, the day after the slip-out, and determined that the site was stable enough to run convoys along the stretch twice a day, according to Caltrans District 5 spokesperson Jim Shivers — though Caltrans is still exercising caution.

"While stable, it is expected to see some further recession as the slope comes to a state of equilibrium," Shivers wrote in an email to LAist.

Next, engineers will stabilize the edge of the road, drilling into parts of the rock that is known to be competent, i.e. stable enough to support pillars. Then, they will insert dowels into the rock and reinforce the area with shotcrete, or concrete that is projected pneumatically.

"Once this work is completed, a traffic signal can be put in place and utilized to allow unlimited access to the traveling public," Shivers wrote, noting that the edge stabilization work needs to take place before Caltrans' planned temporary solution.

This traffic signal would allow for more regular traffic to pass on the stable northbound lane without the assistance of workers. Currently, the only public access allowed on the eroded part of Highway 1 — the only way for Big Sur residents to leave for supplies or goods — takes place on twice-daily convoys.

Caltrans engineers are still determining how best to repair the stretch of road after the temporary traffic signal is installed. Possible solutions include building a bridge, wall or viaduct, according to the agency.

There is some precedent for this repair: When a similar failure took place just south of this location in 2011, engineers ended up fixing the stretch of road by constructing a viaduct.

A hole is visible where a section of southbound Highway 1 broke off and fell in the ocean at Rocky Creek Bridge on April 02, 2024 near Big Sur, California.

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When to expect Hwy 1's full reopening

Shivers wrote that Caltrans currently can't say when this stretch of Highway 1 will reopen with a temporary traffic signal — though they anticipate more information will soon become available.

"The goal is to have a tentative schedule within the week," Shivers wrote.

As for the permanent fix, Shivers wrote that it may still be months before Caltrans will know how long the repairs and construction will take, as its method and design still need to be finalized.

That's typical for projects like this one, which often use pillars, bridges or retaining walls to keep the road stable and keep landslides at bay, said Norris.

"I don't envy [Caltrans] at all, but they are obviously getting to be experts at it since they've been building repairs for decades," Norris said.

Caltrans is also working on repairing a separate stretch of Highway 1 at Paul's Slide that eroded in January 2023. That fix is projected to be finished by late this spring.

Kevin Warsh, President Donald Trump's nominee to serve as the next chair of the Federal Reserve, may face a tough fight for confirmation — partly over events for which he has no control.

The Senate Banking Committee holds a confirmation hearing for Warsh on Tuesday — but already one GOP senator has said he will block a vote on the nominee until the Department of Justice drops an investigation into the Fed.

Warsh will also likely face questions about inflation and borrowing costs and whether he can maintain his independence as Trump makes it clear he expects his next Fed chair to lead the charge to lower interest rates.

Here are three things to know as the confirmation process begins.

Most of the drama has nothing to do with Warsh himself

A key member of the banking committee, Sen. Thom Tillis, R-N.C., has promised to hold up confirmation of the nominee, but not because of any objection to Warsh himself.

Tillis wants the Justice Department to drop its criminal investigation of the central bank and its current chairman, Jerome Powell. That probe is ostensibly about cost overruns on the Fed's headquarters renovation project. But Powell says it's really part of a pressure campaign by the Trump administration to get the Fed to lower interest rates, and a federal judge agreed, blasting the investigation as an unjustified act of intimidation.

The DOJ has promised to appeal the judge's decision. By dropping its probe, the administration could win Tillis' vote and clear the way for Warsh's confirmation. But that hasn't happened yet.

Warsh has argued for lower interest rates, but it may not be so easy

Kevin Warsh previously served on the Fed's board of governors and had a reputation as "hawkish," meaning he was cautious about cutting interest rates for fear inflation might get out of control.

But recently, he's argued that productivity gains from artificial intelligence could allow the central bank to lower interest rates while still keeping prices in check.

Critics like Sen. Elizabeth Warren, the ranking Democrat on the banking committee, see that flip-flop as a sign that Warsh will take direction on rates from President Trump, even though the Fed is supposed to operate free from political pressure.

"Warsh has really gone out of his way to demonstrate that he will be the sock puppet in chief," Warren told NPR.

While past presidents have given the Fed wide latitude, at least publicly, in setting interest rates, Trump has been outspoken in demanding lower rates, raising concern that he could jeopardize the Fed's independence.

Even if Warsh wants to lower interest rates, he may not be able to. Interest rates are set by a 12-member committee at the Fed, and many committee members are reluctant to cut rates until inflation is closer to the central bank's 2% target. The war with Iran and the resulting spike in gasoline prices have made that a more challenging goal.

Warsh has also called for other changes at the central bank

If confirmed, Warsh could also seek to narrow the Fed's footprint in the economy. Warsh has criticized the Fed for straying beyond its statutory role of promoting stable prices and maximum employment. He's argued that the central bank should play a smaller role and that Fed leaders should talk less and stay in their lane.

While he agrees that political leaders should keep hands off the Fed in setting interest rates, he argues the Fed should be equally cautious about stepping into muddy political waters around climate change or inclusion.
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Auditors are flagging major problems with the handling of tax dollars by the L.A. Homeless Services Authority.

The failures surround poor bookkeeping and accounting of taxpayer money at the agency — which spent over $800 million in public funds last fiscal year. The issues emerged despite previous audits flagging serious oversight problems in prior years. The latest audit was conducted by an outside firm hired by the agency to meet federal requirements.

The agency’s financial statements initially included “significant” inaccurate amounts that needed to be adjusted late in the audit process, auditors found in their review of LAHSA’s last fiscal year that ended in June 2025.

The findings are from the federally-required “single audit,” a draft of which was presented to LAHSA’s audit committee on Monday. It found the inaccuracies stemmed from a "significant deficiency” in LAHSA’s “internal controls,” which are supposed to safeguard against financial inaccuracies and fraud.

The accounting failures contributed to delays in completing the audit — which was due to the federal government on March 31 — according to the draft report. Missing that deadline can put future federal funding at risk. LAHSA officials said at the committee meeting that they hope to submit the final audit report this coming Friday, more than three weeks after the deadline.

At a public meeting Monday, LAHSA CEO Gita O’Neill told LAHSA’s audit committee that her team was working to implement many of the auditors’ recommendations, which she called “great suggestions.”

The draft audit report now goes to the LAHSA Commission for approval on Friday. The audit committee was asked to approve it Monday but didn’t have majority support to move forward.

L.A. Mayor Karen Bass, who oversees the agency and is the only elected official on LAHSA’s governing commission, did not respond to a request for comment through a spokesperson.

The backstory

In response to previous audits that found major problems with LAHSA’s oversight of tax dollars, county supervisors decided last spring to withdraw all of the county’s $300 million-plus in annual funding of services through LAHSA and instead have the county directly manage it starting on July 1.

Problems identified in the latest audit reiterate why the county pulled its funding, Supervisor Kathryn Barger said in a statement Monday.

“LAHSA’s inaction and inability to meet its audit deadline is inexcusable,” Barger said.

In a statement, Supervisor Lindsey Horvath said the “significant financial problems” found in the audit give “further confirmation” why the county decided to shift its funds out of LAHSA.

“Accountability isn’t optional; it is required to end this emergency. Anything less is unacceptable,” Horvath said.

The city is considering moving in a similar direction as the county. A key City Council panel — its homelessness committee — recently recommended the full council start shifting city homelessness funding out of LAHSA over the course of the next fiscal year. Bass has urged caution, saying moving too quickly to shift funding could disrupt services for unhoused people.

LAHSA has long functioned as the L.A.’s homeless services department, with over $300 million in city money expected to flow through LAHSA this fiscal year.

As of last summer, LAHSA had $380.5 million in assets and $381 million in liabilities, and received a total of $810 million in operating revenues during the last fiscal year, according to the latest audit.

Other problems identified by auditors

During Monday’s discussion, lead auditor Justin Measley said LAHSA did not disclose millions of dollars in payments to a service provider whose executive was married to LAHSA’s CEO at the time, Va Lecia Adams Kellum. The audit is required to list “related party” transactions, Measley said, which involve an organization with immediate family ties to LAHSA’s leadership. He said auditors only learned about it later through reviewing news media coverage.

“The article is what triggered us knowing about this specifically,” said Measley, who works for the auditing firm CliftonLarsonAllen.

LAist uncovered documents showing Adams Kellum’s signature was on a $2.1 million contract and two other contract amendments with Upward Bound House, the Santa Monica-based nonprofit where her husband Edward Kellum works in senior leadership. The contract named Adams Kellum as the LAHSA official authorized to administer it.

Va Lecia Adams Kellum, former CEO of the Los Angeles Homeless Services Authority, at a news briefing at L.A. City Hall in June 2023.

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A LAHSA-commissioned investigation cleared Adams Kellum of wrongdoing in part because “her signature was unintentionally applied by her staff, not by herself,” according to a summary released by LAHSA. LAHSA spokesperson Paul Rubenstein previously told LAist that Adams Kellum herself “mistakenly signed” the agreements. LAHSA officials also previously distributed an email from Adams Kellum’s official account to a colleague about one of the contracts with her husband’s employer, which stated “Please delete the document that I signed accidentally.”

Last year, state investigators at the Fair Political Practices Commission launched a conflict of interest investigation into the matter, which is ongoing.

Monday’s audit committee meeting also included discussion of the auditors’ findings that LAHSA is locked into paying $75 million for long-term leases over the coming years that cannot be canceled. Those leases are largely through its master leasing program that started over the last couple of years, which leases 14 apartment buildings, totaling 772 units, to provide housing for unhoused people. LAHSA management says the master leasing program is currently significantly underwater financially.

A presentation last week by LAHSA management said the master leases are causing an annual budget hit of $10 million to LAHSA, which is prompting the agency to pull from other grants to pay for the leases.

LAHSA’s lease accounting was at the center of a "significant” correction to the agency’s financial statements late in the audit process, the audit states in its findings.

The auditors also found that LAHSA failed to comply with requirements for payroll costs that it charged to the federal government. The agency’s management failed to ensure timesheets for its employees were approved for three of the 40 timesheets the auditors reviewed, despite the law requiring federally-funded salaries to be based on accurate records of work, auditors found.

Los Angeles Mayor Karen Bass on Monday unveiled a $14.9 billion budget that is significantly rosier than last year’s spending plan, when she suggested massive layoffs and service cuts to accommodate a billion-dollar deficit.

This year, because of a projected increase in revenues, the mayor is proposing no layoffs and a modest expansion of street services. Bass' budget also calls for hiring police officers to keep up with retirements and resignations, maintaining Fire Department spending and holding steady funding for homelessness programs.

“This budget is about protecting the progress we have made and making clear that Los Angeles is moving forward and will not go backward,” Bass said at a news conference.

In the proposal, the reserve fund is 5.7% of the general fund, or $490 million. The budget does not dip into the reserves, in contrast to last year’s plan.

Bass is seeking re-election this year. The primary is June 2.

Some of her challengers in the upcoming election, including Councilmember Nithya Raman, criticized Bass’ proposal as doing little more than maintaining the status quo.

“The budget the Mayor released today tells us the plan is to largely keep doing what we're doing — but what we're doing is not working,” Raman said in a statement.

Next, the proposal will go to the City Council for consideration. Budget hearings will be conducted in the coming weeks.

Increasing revenue

Among the reasons city officials say revenue will go up is the expected influx of thousands of visitors to World Cup soccer matches this summer. More travelers mean more people staying in hotels and paying hotel taxes, as well as more sales tax revenue.

The budget projects a $412 million increase in general tax revenue, including $71 in business taxes, $34 million in sales taxes and $67 million in utility taxes.

The budget would add 170 new positions in the department that handles street repairs and increase funding for street and sidewalk fixes, curb-ramp installation, street sweeping, bulky item pickup and dedicated illegal dumping enforcement throughout the city.

The budget also proposes hiring 510 police officers, representing a target of 8,555 for the Police Department and enough to keep up with attrition, according to budget officials. Bass has set a goal of 9,500 officers.

“It’s about preventing the shrinkage of LAPD,” Bass said.

That proposal is likely to see opposition from some council members who want to see the department shrink and funding for unarmed response teams increase.

Inside Safe

The budget sustains citywide coverage for civilian unarmed crisis response, maintaining deployment of 500 crossing guards and expanding a program that aims to help children get to and from school safely and protect them from gang violence.

Under the budget, funding for Inside Safe, the mayor’s signature program to address homelessness, would remain about the same — $104 million.

The mayor touts an 18% drop in street homelessness as evidence of its success.

The budget maintains funding for the city Fire Department. In November, voters are expected to decide whether to increase the sales tax by half a percent to pay for more firefighters and equipment.

Criticism for the budget

Bass’ challengers immediately criticized her budget as lacking vision.

“This budget maintains a status quo of reduced services and higher fees, the direct result of fiscally irresponsible decisions made by this Mayor in prior years,” Raman said in her statement.

In January, the council member voted against Bass’ plan to hire 170 more police officers.

Adam Miller, a tech entrepreneur and another Bass challenger, said keeping the budget flat “implies that the status quo is working.”

“That is tone-deaf to the city of Los Angeles as Angelenos overwhelmingly feel we need change," he said.

The budget needs to be approved by the City Council and signed by the mayor by July 1, the start of the fiscal year.