Los Angeles is facing a serious budget crisis, with a financial gap now estimated to be nearly $1 billion. This situation poses significant challenges for Mayor Karen Bass and the residents who rely on city services such as street repairs, park maintenance, and public safety. On Monday, the mayor is set to unveil her spending plan for the 2025-26 fiscal year, which will detail her approach to closing this budget shortfall, likely involving workforce cuts and reductions in city services.
A key point of concern is the potential layoffs of city workers. City Administrative Officer Matt Szabo recently indicated that layoffs are “nearly inevitable.” Initially, there were over 3,500 positions under consideration for cuts, but Bass has since reduced that number to fewer than 2,000, with estimates hovering around 1,500. Despite the need to propose layoffs, Bass remains hopeful for alternatives, particularly looking for state financial support to avoid job losses.
The mayor’s budget proposal will also outline where cuts will be made. Notably, Bass has committed to protecting the Fire Department from reductions, especially after the recent fire incidents that highlighted its funding needs. However, the Police Department may face cuts, as it is one of the largest city agencies. The mayor might slow hiring for police positions, which could reduce the number of sworn officers below the current budgeted level of 8,733, down from about 10,000 five years ago. Additionally, there are discussions about potential cuts to the planning department and the Animal Services Department.
Another critical initiative for Bass is the Inside Safe program, which aims to combat homelessness by moving individuals off the streets into temporary and permanent housing. Despite concerns about the program’s costs, Bass has expressed her determination to continue funding it, seeking new revenue sources like a recently approved sales tax for homeless services.
City Controller Kenneth Mejia has been a vocal critic of the city’s spending decisions and may increase his scrutiny as layoffs are considered. There is speculation about whether his office will face cuts and how he will respond to any proposed reductions.
As the city grapples with these financial challenges, there is a possibility that smaller departments will be merged with larger agencies to save costs. Programs focused on youth development and services for seniors could be at risk.
The City Council has until the end of May to review and amend the mayor’s budget proposal before approving it. By then, they will have a clearer picture of whether state assistance will materialize to help alleviate the city’s budget woes.