The Los Angeles City Council has officially approved a revised budget for the fiscal year 2025-26, sending it to Mayor Karen Bass for her review and approval. This budget, totaling $14 billion, reflects key changes made by council members following the initial proposal from the mayor. The council concluded its second and final vote on the revised budget with a margin of 11-2, as Council members John Lee and Traci Park voiced their opposition to the plan. Notably, council members Nithya Raman and Monica Rodriguez were absent during the critical vote.
The approval of this budget comes in light of a staggering $1 billion deficit that the city is grappling with, leading council members to argue that the revised budget plays a crucial role in preserving city employment. The plan is expected to save approximately 1,000 jobs that were originally proposed for layoffs, while still ensuring that essential city services can continue without disruption. Mayor Bass’s initial budget proposal had included 1,647 layoffs as a measure to alleviate the fiscal shortfall, in addition to the elimination of more than 1,000 vacant positions.
To mitigate the impending layoffs, city officials are exploring the possibility of transferring employees to proprietary departments such as the Department of Water and Power and various port and airport operations, which operate outside the general fund. While unionized city workers acknowledged the efforts made to lessen layoffs, concerns were expressed regarding potential severe cuts to vital services and increased liabilities that could arise in the subsequent fiscal year. Charles Leon, a regional coordinator for the Service Employees International Union Local 721, emphasized the need for immediate discussions to enhance workforce development and address vacancy challenges.
Working in conjunction with other labor unions, including the American Federation of State, County, and Municipal Employees 3090 and the Teamsters, SEIU Local 721 represents a broad spectrum of more than 10,000 city employees across Los Angeles. Alongside measures to save jobs, the revised budget also maintains funding for public safety. Key components of the plan include the hiring of 240 new police officers over the next year, a reduction from the 480 originally proposed by Bass, and the addition of 58 personnel for the Los Angeles Fire Department, down from 227.
Despite these budget allocations, council members Rodriguez, Park, and Lee previously expressed dissatisfaction with how resources were distributed, particularly concerning public safety funding. The updated budget has also seen a cutback in Mayor Bass’s prominent homelessness initiative, Inside Safe, with Rodriguez advocating for a more substantial reduction in funding due to the program’s high costs and lack of oversight.
Councilman Tim McOsker defended the decision to avoid deeper cost-cutting in public safety sectors, emphasizing that maintaining these budgets would help prevent further layoffs and threats to essential city services, including street repairs, sanitation, and street lighting. He was optimistic that future economic improvements might create further opportunities to hire more police personnel.
The budget deficit stems from various issues including overspending, costly liability payouts, reduced tax revenues, and labor contracts, with the city preparing to allocate approximately $250 million in 2025-26 due to labor agreements. To tackle the deficit, council members also agreed to draw upon $29 million from the city’s budget stabilization fund and anticipate an additional $20 million from business tax revenue. Moreover, the city plans to increase parking ticket fines, which is projected to generate another $14 million in revenue.
In addition to public safety, the revised budget incorporates $5 million in funding for the Animal Services Department, as proposed by Mayor Bass, and allocates resources to continue the operations of the Climate Emergency Mobilization Office, among other initiatives. With the fiscal year set to commence on July 1, the city must finalize the budget in a timely manner to ensure all provisions are in place before the start of the new year.
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