Mayor Karen Bass’ office said it will refrain from scheduled staff pay increases following pay cuts as elected officials are considering spending cuts and layoffs to address the nearly $1 billion shortfall in the 2025-26 Los Angeles budget.
“The mayor has received a raise and the mayor’s office staff have not obtained regular scheduled cost-of-living adjustments for June 2025 (4%), December 2025 (2%), and June 2026 (4%).
Her office did not elaborate on how much pay cut base would be or when it would take effect.
Los Angeles Mayor Karen Bass said more following the city’s budget and future city speeches. Conan Nolan is reporting NBC4 News on Tuesday, April 22, 2025 at 4pm.
Bass said city employees layoffs are needed to address the extraordinary budget gap. Her office later announced the mayor’s spending proposal. This includes 1,647 layoffs, which the mayor said would work to reduce that number.
“My proposed budget includes, unfortunately, a layoff, a decision to make an absolute last resort,” Bass said. “So let me as you, our hardworking civil servant, assure you that I will not stop fighting for you.”
Bass’ Office said sworn holders and firefighters were not affected by layoffs. The proposal does not include support for homeless funding protection, library, recreation, park facilities time, and capital infrastructure.
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. Bass said her budget proposals “will bring about a fundamental change in the way cities operate.”
Bass proposes reducing positions in more than 2,700 cities with 1,647 layoffs and 1,053 free locations. These savings are expected to lower the city’s nearly $1 billion deficit to $800 million, among other new revenue streams, according to the mayor.
Numbers could change as the budget process moves towards consideration for the final city council in June.
Karen Bass mayor highlighted the progress of Pallisard, but also discussed the budget deficit of nearly $1 billion. Alex Rozier reports the NBCLA report on April 21, 2025 at 6pm.
The proposal also calls for the integration of several city sectors.
Despite the staff cuts, the proposed budget will increase by 8.2% over its recruitment expenditure plan for fiscal year 2024-25.
The deficit is the result of 35% reductions in tax revenue, excessive spending, increased liability payments, labor costs and fire recovery efforts, the city said.
As a result of the labor contract, city employees will see an increase in pay and will cost an estimated $250 million for fiscal year 2025-26.
“My proposed budget is balanced, but we are facing a disastrous economic situation,” Bass said in a statement. “It’s more important than ever to work closely with state and workers’ partners, especially when rebuilding in Pallisard.”
The bus traveled to Sacramento on Wednesday, lobbying state officials for a $2 billion relief package. Gov. Gavin Newsom will announce a revision of the state budget in mid-May. At the time, city officials may have been thinking better where they stand financially.
Under the city’s charter, Los Angeles must finalize its budget before the start of the next fiscal year, July 1st.
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