An oversight body for the Port of Los Angeles Thursday approved a $2.7 billion spending plan for fiscal year 2025-26, which officials say will prioritize ongoing investments in workforce development, business, community and sustainability.
In a unanimous vote, the five-member Los Angeles Harbor Commission advanced the budget, representing a $82.5 million, or 3.1%, increase compared to fiscal year 2024-25. Harbor Commission President Lucille Roybal-Allard described it as “prudent” and “well-balanced.”
“We are confident that our careful financial planning and fiscal management over the past decade positions us well for sustained forward progress,” Roybal-Allard said during Wednesday’s Harbor Commission meeting.
Jeff Strafford, the port’s chief financial officer, gave a recap of the budget.
He anticipated that cargo volume in the coming fiscal year, which begins July 1, is expected to reach 8.2 million twenty-foot equivalent units, representing a decrease of approximately 9.9% compared to the previous year’s adopted budget.
The reduction in cargo volume is likely to be a $56 million decrease in revenue. Earlier projection placed revenue at about $713 million, now down to $658 million.
A slowdown in cargo movement and trade is expected as a result of federal trade policies and tariffs.
President Donald Trump in April enacted his long-promised “reciprocal” tariffs — placing a 10% baseline tax on imports and other higher rates for U.S. trading partners that run so-called trade surpluses. China has faced much higher tariffs, up to 145%, prompting Chinese officials to threaten a 125% tariff on U.S. goods.
Amid a 90-day agreement, U.S. and China lowered tariffs, and are negotiating on an overall deal.
According to Strafford, the port is expected to reduce overall work related to the transportation of containers, which means less trucks and less ships. Operating expenses are set to increase in part due to salaries and benefits, and a potential proposal to reduce vacancies. The port may take in transfers from the city workforce — a move intended to further reduce layoffs as Los Angeles addresses a roughly $1 billion deficit.
The 2025-26 budget forecasted operating revenues at $657.6 million, of which about $470.3 million is expected to generated by shipping services at the port. Operating expenses are estimated at $427.1 million.
Additionally, the budget will allocate $231.3 million to a robust capital improvement program. This amount is a decrease of $18.1 million or about 7.2% compared to the 2024-25 spending plan.
The port will also provide funds to support major terminal and transportation construction for the following projects:
— $47.6 million toward the $130 million State Route 47/Vincent Thomas Bridge & Front Street/Harbor Boulevard Interchange Reconfiguration Project;
— $26.3 million to support the total $73.8 million Berths 302-305 On-Dock Rail Expansion;
— $24.4 million for two Marine Oil Terminal Engineering and Maintenance Standards projects, located at Berths 238-239 and Berths 167-169.
Meanwhile, the port will invest about $23.2 million for public access and environmental enhancement projects. Of that amount, about $2.8 billion will support the $76.6 million Wilmington Waterfront Avalon Pedestrian Bridge and Promenade Gateway Project, as well as allocate $8.6 million toward the $501 million Zero Emissions Port Electrification & Operations project.
“We come into this budget in a strong position, with nine consecutive years of positive cash flow,” Gene Seroka, port executive director, said in a statement. “Yet in the face of global trade and economic uncertainties, it’s more important than ever to navigate with a steady hand, remaining focused on our planning and priorities.”
Strafford noted that some of the additional money coming to the port, about $68 million, is from federal, state and local grants or from some direct reimbursements from port tenants.
“This is a year where we’re going to kind of see how things play out, so we could really assess what the long term is going to be looking like,” Strafford said.