The City Council Wednesday approved a four-year agreement with the union representing Los Angeles Fire Department chief officers, granting a total 15% base wage increase through October 2028.
In a 12-0 vote, the City Council approved the agreement with the Los Angeles Fire Department Chief Officers Association. Union members — including deputy and assistant chiefs — are set to receive a 6% raise at the end of June, which includes a previously delayed 3% increase from last year.
Council members Heather Hutt, Adrin Nazarian and Curren Price were absent during the vote.
Over the next three years, union members are set to receive a 3% base wage increase each June, reaching a total 15% increase by June 27, 2027. The agreement also includes a 5% annual increase to the health insurance subsidy and adds new provisions for paid parental leave and time off for reproductive loss.
According to a report from City Administrative Officer Matt Szabo, the agreement is expected to cost the city more than $13.3 million.
In the 2024-25 fiscal year, there will be a $1.7 million impact to the general fund, followed by a $2.7 million cost in fiscal year 2025-26, a $3.9 million cost in fiscal year 2026-27 and approximately a $5 million cost in fiscal year 2027-28.
In the last two years, elected officials approved new labor contracts with its unionized workforce, which have contributed to the city’s budget issues.
The City Council and Bass approved an approximately $14 billion budget for the upcoming fiscal year, which begins July 1. The spending plan reduced expenditures in some areas and included cost-saving measures to address a $1 billion deficit, but is larger than the $12.9 billion budget for the 2024-25 fiscal year.
On Tuesday, the City Council approved a resolution declaring a state of fiscal emergency due to these issues. The declaration authorizes the city to move forward with planned layoffs and other remedies to address the deficit.
The deficit was partially caused by overspending, new labor contracts and rising liability costs in connection with complaints filed against the Los Angeles Police Department, among other issues. These settlements have prompted elected officials to dip into the reserve fund, a rainy day account for emergencies.
January’s wildfires exacerbated the city’s financial condition, further reducing business and property taxes. Travel and tourism have also taken a hit, leading to lower revenue being collected from hotel taxes.
There are 614 layoffs on the table, according to a social media post from City Controller Kenneth Mejia.
Of that figure, about 248 LAPD civilian employees are expected to lose their jobs, as well as 57 workers from the Personnel Department, 44 sanitation workers, 41 Fire Department workers, 34 workers from information technology, 33 general services workers and 29 transportation employees, among others.
“It’s unfortunate that the City has to declare a Fiscal Emergency but as we warned and expected this would happen, we are not surprised,” Mejia said in a statement.
“The City needs to declare a Fiscal Emergency in order to go through with the layoffs. Our message for LA residents is to push your elected officials to be more honest and transparent about the City’s budget and finances, and talk about the tough financial decisions that need to be made and why.”
Elected officials have discussed a proposal to further reduce layoffs by transferring such workers to the Port of Los Angeles, Los Angeles World Airports and the Department of Water and Power. These three proprietary departments are not impacted by changes in the General Fund because they operate on revenue from their respective services.