A day after proposing 1,647 layoffs as part of her $13.9 billion budget for fiscal year 2025-26, Mayor Karen Bass Tuesday reiterated that she intends to work with other leaders to come up with solutions to reduce that figure if possible.
During a news conference in the San Fernando Valley, Bass said she is preparing for a trip to Sacramento on Wednesday, where she will meet with state leaders and discuss potential solutions for the city’s precarious financial position. In recent weeks, the mayor and other elected officials have lobbied state leaders for a $2 billion relief package — with a decision on the matter to be determined.
In total, the mayor has proposed cutting more than 2,700 city positions; 1,647 would be layoffs and the remaining 1,053 are vacant positions. Those savings, among new revenue sources, have lowered the city’s nearly $1 billion deficit to $800 million, according to the mayor.
“We do not want to see the layoffs take place. But as I mentioned yesterday, by the City Charter, the budget was due,” Bass said. “We are certainly hoping that over the next month and a half we will be able to come up with solutions that will avoid layoffs or that the number of individuals or positions eliminated will be significantly reduced by other solutions.”
Former City Council President Paul Krekorian, who serves as head of the Office of Major Events, said he thinks the city will overcome the challenges and be able to host a successful 2028 Summer Olympic Games. The crises of the city are reminiscent of the challenges before elected leaders during the 1984 Olympics, he said.
“We faced difficult times before, Los Angeles rises to the occasion,” Krekorian said.
According to city officials, the mayor considered 3,500 layoffs but was able to reduce that figure by deferring capital projects and adjusting expenditures.
The city is facing fiscal concerns due a 35% reduction in tax revenue, overspending, an increase in liability payouts, and costs related to recovery from January’s devastating wildfires. Additionally, labor contracts will cost $250 million in FY 2025-26, with anticipated costs in the following years. The local economy is further experiencing uncertainty as a result of federal trade and immigration policies.
David Green, the president of local SEIU 721, which represents more than 10,000 city workers, said the union will take action against the proposed layoffs. In a statement, he argued the city should look at every single dollar, and said laying off workers shouldn’t be the first option.
“We will continue to work with the city to find innovative solutions to the crisis, including identifying new revenue streams, alternate funding sources and wasteful spending on outside contractors that gobble up city funds,” Green said.
“SEIU 721 members are united and ready to overcome this challenge and, just like in the past, it will be our decisions that save the city — not the short-sighted whims of administrators in City Hall,” he added.
Despite the cuts, the proposed budget would be an 8.2% increase over the adopted spending plan for 2024-25.
Several departments are expected to have reduced authorization for positions.
Animal Services, for example, would see its ability to hire shrink from 328 regular positions to 248, a reduction of 80, and resolution-funded positions would fall from 50 down to 10 in FY 2025-26. The department, which has struggled in recent years to care for its animals due to issues with staffing and overcrowding, would expect 62 layoffs, according to City Controller Kenneth Mejia.
The most hard-hit departments facing layoffs are the Los Angeles Police Department with 403 potential layoffs of civilian workers, transportation with 262 layoffs, sanitation with 159 layoffs, street services with 130 layoffs and city planning with 114 layoffs.
Bass’ proposal also details some reduction in overall funding for departments. Animal Services is expected to receive a decrease of $4.8 million; building and safety expects a decrease of $2.9 million; and city planning’s budget would decrease by $15.3 million.
Meanwhile, the fire department would see an increase of about $103.7 million and the addition of 227 new positions. The LAPD would receive an increase of $6.1 million to its nearly $2 billion operational budget.
There are no plans to layoff sworn police officers or firefighters.
In her budget proposal, Bass described delivering a “balanced” budget proposal for FY 2025-26, which will begin July 1. She also made a commitment to restore the reserve fund to 6% of general fund revenue, above the 5% city policy.
Library, recreation and park facility hours would remain unchanged. There would be funding for projects such as the modernization of the L.A. Convention Center, improvements for Sepulveda Basin and parks in the San Fernando Valley and South L.A.
Under the plan, the departments of Aging, Economic and Workforce Development and Youth Development would be consolidated under the Community Investment for Families Department. Bass also proposed the elimination of the Health Commission, Innovation and Performance Commission and the Climate Emergency Mobilization Commission.
The Commission for Community and Family Services would be moved under the Community Action Agency-Community Action Board, and the Affordable Housing Commission would move under the Rent Adjustment Commission.
The budget proposal will be reviewed and likely be revised in a series of upcoming meetings of the Los Angeles City Council.
In response to the mayor’s State of the City Address and her budget, Roxanne Hoge, chair of the Los Angeles County Republican Party, said Bass mentioned a lot of great ideas for governing Los Angeles.
“Unfortunately, in her tenure as mayor, she’s done exactly none of them. We all deserve clean, livable streets and affordable homes that won’t be broken into or burned down regularly, so we can only hope that now, she’ll get the job done,” Hoge said in an email to City News Service.
Jackie Filla, president and CEO of the Hotel Association of Los Angeles, said the city must do everything possible to protect revenue sources.
“Through business, sales and hotel guest tax (transient occupancy taxes), the tourism industry contributes hundreds of millions of dollars a year to the city of Los Angeles. We look forward to continuing our work with the mayor and City Council to boost this industry and the more than 540,000 jobs it provides,” Filla said in a statement.