LA Mayor Bass proposes $14.9B budget with no major cuts, little new spending

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.