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LA City Minimum Wage Increase Could Raise City Budget By $1 Billion By 2028, City Report Finds
Mayor Karen Bass gives her first State of the City address in the Los Angeles City Council chambers on Monday, April 17, 2023.
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Raises for L.A. city workers negotiated between Mayor Karen Bass and employee unions earlier this year will add $1 billion to the city's yearly budget by 2028 if approved, according to a new report from the city's Administrative Officer Matt Szabo.
What's in the labor agreements
The proposed raises, which still have to be approved by the city council, include a bump in the minimum wage for city employees to $20 an hour effective this April, which increases to $25 an hour by 2026.
Szabo's analysis looked at the impact on the overall city budget through the 2028-2029 fiscal year:
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The current city budget
If the agreements are approved by the city council, the budget would immediately increase by $316 million next year, according to the CAO report. Next year's budget hasn't been released yet, but the city's total budget for this fiscal year is $13 billion.
The contracts up for approval cover increases in salary and benefits for tens of thousands of city workers in a range of unions, including thoe representing clerical workers, city engineers, librarians, building trades and others.
City budget woes
The city is already facing a shortfall of about $400 million in this year's operating budget, in large part due to an increase in salaries for the Los Angeles Police Department approved last August. Lawsuit settlements were also a major reason for the deficit, according to City Controller Kenneth Mejia.
Proposed fixes
Many city departments have been operating at a surplus in recent years because 1 in 6 city jobs are currently unfilled. A January report from the CAO recommended that these unfilled jobs be eliminated, with the exception of positions considered critical, including LAPD, the fire department, public works and correctional nurses.
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State of the City address is this Monday
L.A. Mayor Karen Bass will give her State of the City address on Monday at 5:30 p.m., and is expected to unveil her proposed budget for the upcoming fiscal year, which begins July 1, later this month.
How to watchdog local government
The best way to keep tabs on your own 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.
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