Los Angeles County is facing a significant financial challenge as it prepares for a new labor agreement with its largest union, SEIU 721. This deal, which is expected to cost over $2 billion over three years, will require the county to make tough budget cuts. Chief Executive Fesia Davenport presented the situation to the Board of Supervisors, highlighting the need for a 5.5% budget cut across departments to accommodate the increased salaries and bonuses for county workers.
The looming agreement comes as the county grapples with various financial issues, including the aftermath of devastating wildfires that are projected to cost an additional $2 billion. Federal budget cuts threaten public health funding, and a historic $4 billion settlement for sexual abuse claims has already strained resources. As a result, many county departments are being asked to tighten their belts further.
Davenport explained that to fund the new labor costs, the county will cut $50.5 million from programs such as parks and violence prevention initiatives. Each department will need to reduce their budgets by 5.5%, a move Davenport described as necessary given the financial constraints.
Despite these cuts, the tentative labor agreement includes a $5,000 bonus in the first year, followed by a 2% cost of living adjustment and a $2,000 bonus in the second year, culminating in a 5% salary increase in the third year. The county plans to use $778 million from its general fund to help cover these costs, with the remainder coming from federal and state funds designated for staffing.
David Green, the head of SEIU 721, expressed satisfaction with the agreement, noting that it is the result of months of negotiations and recent strikes by union members. The county is also in discussions with 15 smaller unions, anticipating similar salary adjustments for their members.
While the supervisors approved the budget, they expressed concerns about the overall financial health of the county. Supervisor Hilda Solis remarked that the budget may appear healthy on the surface, but it is severely compromised. The cuts will lead to the closure of two probation offices, earlier shutdowns of county swimming pools, and reduced hours for regional parks.
The county’s financial picture is precarious, and as it moves forward with the labor agreement, it remains to be seen how these budget cuts will impact essential services and the community at large.