This week the City Council discussed a very grim assessment of what to expect in LA’s budget for the next year.
By charter, the city must pass a balanced budget every year- for every dollar spent, we need a revenue source. Minor shortfalls are common but the bleak reality we face has not been seen since the Great Recession — on a percentage basis it’s worse. So before the Mayor’s budget release next month, I want to share how the city got in this mess and my hope to move LA into a more financially sustainable future.
Overall, it’s a budget shortfall of up to $1 billion- requiring about a 13% cut from last year. The crisis has two major components- over-spending and unpredictable/lower revenue. The budget will suffer from decreases in tourism and tax receipts at the same time, facing higher costs due to tariffs and inflation. Also, federal funding that we traditionally counted on may very well be gone with the new administration, jeopardizing community programs, social services for families, seniors, and housing.
More than 80% of the City’s expenses are employee salaries and many of these workers recently negotiated costly new contracts. Trash pickup, potholes, tree trimming, park maintenance and other critical services are directly dependent on these city workers. Worker layoffs result in service cuts.
On the spending side, LA has accepted financial obligations including programs for vulnerable people including homeless sites that, per our charter, should not be the city’s sole responsibility. I hope that my colleagues and I will question what is a true core city service and transparently decide what we can and cannot afford to do.
For me, public safety has always been the top priority and the Palisades Fire has proven that the first responders must have sufficient resources to handle any emergency or disaster. While some members on the council will look to cut public safety departments for ideological, as well as financial, reasons, I will fight to make sure our city remains safe and prepared for the next inevitable emergency.
I will continue to ask the tough questions and seek solutions to preserve our core city services. I’ll make sure to share updates with residents through the Valley News Group as well as through my newsletter and various social media channels. As always, if you have any questions, please do not hesitate to write to me at c03.foryou@lacity.org.
