Support for LAist comes from
We Explain L.A.
Stay Connected

Share This


LA Controller Forecasts A $231M Hit To The City's Bottom Line With Steeper Declines Coming

Before you
Dear reader, we're asking you to help us keep local news available for all. Your tax-deductible financial support keeps our stories free to read, instead of hidden behind paywalls. We believe when reliable local reporting is widely available, the entire community benefits. Thank you for investing in your neighborhood.

How hard is the coronavirus pandemic hitting city government?

Without a major infusion of cash from the federal government, things look fiscally bleak here in Los Angeles.

L.A. City Controller Ron Galperin released a revised revenue estimate today that forecasts a $231 million hole in the 2019-20 budget and an even bigger gap next year. The city’s 2020-21 budget could have a revenue shortfall “between $194 million and $598 million, depending on the length of the current shutdown and the speed at which the economy begins to recover," Galperin said.

“The City is facing an unprecedented crisis due to the coronavirus pandemic, and our revenue outlook is much darker than it was even a month ago. While these struggles are not unique to Los Angeles, our City is in a better position than most municipalities because of the diversity of our revenue streams and healthy Reserve Fund balance.”

His office also released these charts showing the forecast:
Support for LAist comes from

The full report is available on the controller’s website.

During his Tuesday evening briefing, Mayor Eric Garcetti said his team is writing a proposed budget "as we speak." It’s due to be presented to the city council no later than Monday, April 20. The budget needs to be passed by the council by June 1.

"There's no question though, that we are going to have cuts,” Garcetti added, before making a plea to Congress and the White House for more bailout money for local governments in the next round of COVID-19 relief spending.


This developing story will be updated.

Our news is free on LAist. To make sure you get our coverage: Sign up for our daily coronavirus newsletter. To support our non-profit public service journalism: Donate Now.