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What do you know
Mayor Karen Bass proposed the City of Los Angeles budget for the 2025-2026 fiscal year. The Los Angeles spending plan includes more than 1,600 layoffs and other efforts to reduce the nearly $1 billion deficit. The plan calls for the integration of some urban sectors. The figures presented Monday could change as budget debates continue ahead of the start of the next budget year in July.
Mayor Karen Bass has announced his spending plan for the city of Los Angeles. The city of Los Angeles includes more than 1,600 layoffs, budget cuts and increases, city sector consolidation, and other efforts facing a nearly $1 billion deficit.
The 2025-2026 budget was released Monday in a city speech within Los Angeles City Hall after the mayor addressed the wide range of challenges facing Los Angeles. The budget plan requires approval from the city council, which plans to consider the $13.9 billion spending plan for June.
The proposal will increase by 8.2% in the 2024-2025 urban budget. The numbers below may change as budget debate moves forward.
The upcoming budget year will begin in July.
Here’s what you need to know about the mayor’s proposal:
City officials are calling for the possibility that city employees could slow pay increases to reduce costs. Conan Nolan is reporting NBC4 News on Thursday, March 20, 2025 at 6pm.
Where are the cuts to the budget proposal for Los Angeles?
The Los Angeles Department of Animal Services will see a $4.8 million decrease in operational budgets and a decline in employees with 80 regular positions and 40 resolution funds.
The Department of Construction and Safety will also lose 31 normal positions, cutting budget cuts by around $2.9 million.
The budget proposal includes 1,647 layoffs. That figure could change before the final budget is adopted by the city council.
Several departments consider reducing their operational budgets. Urban planning will reduce spending by $15.3 million and 187 positions. The city’s scribes’ budget will be reduced to $20.1 million for fiscal year 204-25, down from about $1.3 million.
Bass’ Office said that officers and firefighters who are sworn in will not be one of the layoffs.
100 days after the Palisade fire, La Mayor Karen Bass said the state was on track for the fastest wildfire recovery in state history. Karma Dickerson reports NBC4 News on Thursday, April 17th, 2025 at 5pm.
Where is spending increasing?
The Los Angeles Fire Department will see an increase of around $103.7 million and 227 new positions added. LAFD’s operating budget will increase to fund 227 new positions, support more paramedics and help maintain the vehicle. This is the issue that was criticised following the wildfires in January.
The Los Angeles Police Department will receive a $6.1 million increase in its operational budget of nearly $2 billion. The city will hold about 20% (120 people) compared to 2024.
The city’s law firm will see an increase of $9.6 million on its budget, up from $176.3 million between 2024 and 2025. Controller Kenneth Mejia’s office will receive an increase of $2.2 million to $23.1 million compared to $20.8 million allocated for fiscal year 2024-25. The LA City Council received an additional $2.1 million, up from $37.2 million to $39.3 million. The mayor’s office is expected to have no changes to the workplace and will increase its operational budget by nearly $599,649.
Opening hours for libraries, recreational and park facilities have not changed. There is funding for projects such as modernising the LA Convention Center and improving the Sepulveda Basin and Parks in San Fernando Valley and South LA.
Mayor Karen Bass, businessman Rick Caruso and Lakers head coach JJ Reddick are rebuilding the Pallisard Recreation Center. Kathy Vara reports NBC4 News on Thursday, April 10th, 2025 at 5:30pm.
Which departments are integrated?
The aging department. Economic and labor development; and youth development will be integrated under the community investment sector for families.
Bass also proposed elimination of the Health Committee, the Innovation and Performance Committee and the Climate Emergency Mobilization Committee.
Community and Family Services Committees will be moved under the Community Action Agency and Community Action Board, while Affordable Housing Committees will be moved under the Rent Adjustment Committee.
How did you get here?
In March, a top Financial City advisor told elected officials that the city’s tough outlook for 2025-26 requires a tough decision, which could lead to thousands of layoffs. Bass has directed the city’s chief administrative officer to report to her with strategies that significantly reduce spending while protecting essential services.
Bass said her 2025-2026 budget proposal “will bring about a fundamental change in the way cities operate.”
The city’s financial crisis has been exacerbated by wildfires in the Pacific Palisades, which also affected property taxes and other tax revenues. Additionally, the city is suffering from liability payments, which tripled this year.
Federal trade and immigration policies have caused problems for LA tourism, city officials say.
The labor contract with the Los Angeles Police Department and city employees of the union (each reaching $1 billion at the end of fiscal year 2028/29) contribute to the city’s financial concerns. The contract has been approved over the past two years, but city officials said it is necessary to ensure workers are compensated at fair and competitive rates.
As elected officials consider ways to increase revenue, some options could lead to increased taxpayer taxes, fees and other expenses. The city is also considering bond measures to create revenue streams for specific needs, such as fire department maintenance and construction.
The city council recently approved a plan to raise waste collection fees, the first first-ever adjustment in 17 years. The elected officials hope to launch new fees by January 2026, but further approval is required before enacting fee changes.
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