Europe EditionWith LA facing $1B deficit, staff warn finances could be worse than assumed
- Los Angeles is confronting a budget shortfall approaching $1 billion in the next fiscal year, leading to widespread layoffs and spending reductions throughout multiple city departments.
- The deficit stems from increasing expenses related to staff, escalating legal settlements with a $90 million gap in lawsuit funding, and a weakened local economy.
- City officials, including Chief Legislative Analyst Sharon Tso, warn that the budget's layoff schedule is ambitious and that delays would increase monthly costs by tens of millions.
- S&P lowered Los Angeles' credit rating last week due to concerns over its deteriorating financial health and ongoing structural challenges, while Tso cautioned that additional staff cuts and service withdrawals might lead to negative effects such as reduced revenue and increased long-term liabilities.
- Mayor Karen Bass seeks a one-time state bailout that may offset some cuts but will not resolve structural problems, and economic uncertainties could worsen the city’s financial outlook.
11 Articles
11 Articles
LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration
Los Angeles Mayor Karen Bass is navigating one of her city’s most challenging periods in decades. She’s facing a nearly $1 billion budget shortfall, the long recovery from January’s wildfires, and preparations for two of the world’s largest sporting events — the 2026 World Cup and 2028 Olympic Games.
With LA facing $1B deficit, city officials warn that Mayor Bass's plan is likely to fall short
LA officials warn Mayor Karen Bass’s “balanced” budget proposal may not sufficiently account for slowing revenue, a possible recession, expiration of labor agreements and the city’s credit rating downgrade.
The Daily Gazette
With LA facing $1B deficit, staff warn finances could be worse than assumed
(The Center Square) - As the city of Los Angeles proposes mass layoffs to close a nearly $1 billion deficit for the coming fiscal year, city officials warn Mayor Karen Bass’s “balanced” budget proposal may not sufficiently account for slowing…
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