Los Angeles Mayor Karen Bass is grappling with a myriad of challenges as she approaches her annual State of the City address amid issues stemming from the Palisades fire and a significant budget shortfall.
Criticism has been mounting since the beginning of the year concerning the city’s crisis management during the Palisades fire, particularly regarding Bass’s initial absence, the ousting of the assertive fire chief, and the chaotic coordination from her recovery czar.
The mayor’s challenges extend beyond crisis management. Issues such as declining home construction, an exodus of film and television productions, and the impact of former President Trump’s trade and immigration policies are weighing heavily on the economy.
During her State of the City address scheduled for Monday, Bass will present her evaluation of the city’s burgeoning challenges and unveil her budget for the 2025-26 fiscal year, aimed at tackling a looming financial crisis characterized by a nearly $1 billion shortfall.
Discussions within City Hall have centered around the potential for substantial layoffs — affecting more than 1,500 city workers, or nearly 5% of the workforce — along with the elimination of vacant positions.
City Councilmember Ysabel Jurado expressed shock at the scale of these issues, admitting she did not anticipate needing to contemplate thousands of layoffs.
In the face of adversity, Bass seeks to instill a sense of optimism, highlighting achievements such as a drop in street homelessness, a decrease in homicides and shootings, and the city’s recovery from the fire progressing more swiftly than after prior disasters.
While she acknowledges the existence of challenges, Bass asserts that Los Angeles is not in decline and is preparing to welcome the world for the 2026 World Cup.
Among her strategies to mitigate layoffs is her pursuit of financial support from California Governor Gavin Newsom and the state Legislature.
Last month, the mayor, along with several council members, traveled to Sacramento to discuss the financial distress plaguing the city and made a direct appeal to Newsom, whom she described as being hopeful about the potential for state assistance.
In addition to seeking state funding, Bass’s administration is negotiating with employee unions for concessions, including postponements of raises set for the next fiscal year.
The financial burden of these raises could add up to around $250 million to the new budget, and union leaders have shown resistance to these proposals.
The Los Angeles Police Protective League, representing nearly 8,800 officers, has spoken out against postponing the increases, asserting that members deserve fair compensation.
Similarly, the Service Employees International Union Local 721, which has more than 10,000 members, has pushed back against any efforts that would negatively impact city workers.
The prospect of deep cuts to essential services raises significant concerns for Bass, particularly as dissatisfaction among voters could complicate her reelection campaign.
Although she is not facing any prominent challengers at the moment, Rick Caruso, who lost to Bass in the 2022 election, has resurfaced as a vocal critic of her administration.
Amid a recent poll by the UCLA Luskin School of Public Affairs indicating that 49% of L.A. County residents hold unfavorable views of Bass—up from the previous year—instances of discontent regarding living costs heighten the scrutiny.
Political sociologist Mindy Romero notes that the challenges stemming from the Palisades fire have strained Bass’s previously favorable perception and that her upcoming speech presents a crucial opportunity to reshape that narrative.
Darry Sragow, a Democratic strategist, highlights the deep-rooted dissatisfaction among voters regarding not only the major issues of economic instability but also everyday concerns such as poor sidewalk conditions and protracted 911 response times.
Sragow articulated a belief that the city’s financial woes are self-inflicted and expressed skepticism regarding the prospect of significant aid from Sacramento.
Preparing for her address, Bass has begun to drop hints about her forthcoming budget, assuring the public that she will not diminish funding for the fire department and pledging not to cut her signature homelessness initiative, Inside Safe.
However, there is growing concern among City Council members regarding the financial sustainability of Inside Safe, which relies on leases with hotels and motels for the transition of unhoused individuals from the streets.
According to reports, by early March, Inside Safe had successfully relocated more than 4,000 homeless individuals indoors, with an alarming number—around 1,350—returning to the streets, and approximately 70 dying in the process.
Despite attempts to streamline housing construction processes, the city faces an alarming downturn in new housing permits, with a staggering 43% decrease being reported compared to 2022 when Bass was inaugurated.
Mott Smith, chair of the Council of Infill Builders, criticized the lack of meaningful advancements in housing policy, arguing that this stagnation is causing major investors and lenders to abandon the Los Angeles market.
Additionally, the decline in local film and television productions is exacerbating economic instability, as the entertainment industry serves as a vital contributor to the local tax base.
Monica Levinson of Producers United highlighted how lost productions yield negative ripple effects throughout the economy, impacting local spending in numerous sectors.
The city’s revenue projections are worrisome, as recent information from City Administrative Officer Matt Szabo indicates an expected shortfall of tax revenues amounting to $315 million due to decreased local economic activity.
Bass remains resolute in pursuing expanded tax incentives for the entertainment sector while expressing her belief that housing challenges are largely influenced by market conditions, such as escalating interest rates.
Another financial hurdle is the escalating costs linked to police misconduct lawsuits and other claims against the city, with the mayor expected to allocate an additional $100 million for legal payouts in the upcoming budget year.
Bass characterizes the downturn in economic activity and the resulting financial turmoil as primarily driven by rising legal costs and diminished income.
She stands firm in her position regarding employee wage increases made in recent years, asserting that they were essential to retain city workers.
Former City Councilmember Bernard C. Parks attributed the city’s financial dilemmas to costly employee salary agreements and emphasized the importance of sustainable budgeting practices.
As Mayor Bass moves forward, the path to addressing the myriad challenges facing Los Angeles remains fraught with obstacles, demanding strategic solutions to restore public trust and improve the city’s overall financial health.
image source from：https://www.latimes.com/california/story/2025-04-20/mayor-bass-weighs-deep-cuts-as-challenges-mount
