Mayor Karen Bass’ proposed spending plan aims to close the $1 billion deficit and will address other financial challenges before the Los Angeles City Council’s Budget and Finance Committee.
The committee will convened at a special meeting at Van Nuis City Hall on Friday to discuss and revise the mayor’s proposed $13.9 billion spending plan for fiscal year 2025. You can talk at the meeting about the budget proposals announced earlier this week.
A second committee meeting with another public comment period is scheduled for Monday.
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.
The proposal also calls for the integration of some urban sectors.
Despite the staff cuts, the proposed budget will increase by 8.2% over its recruitment expenditure plan for fiscal year 2024-25.
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 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.
Source link
