Los Angeles Faces $225 Million Gap to Avert Layoffs in 2025-26 Budget
Los Angeles City Controller Kenneth Mejia issued a stern warning regarding the city’s fiscal health, stating that $225 million is urgently required to prevent layoffs in Mayor Karen Bass’s proposed budget for the upcoming 2025-26 fiscal year. The budget, aimed at closing a nearly $1 billion deficit, outlines an overall spending plan of $13.9 billion, marking an 8.2% increase over the previous fiscal year.
The Budget and Finance Committee is currently reviewing the budget, with finalization required before July 1. Mejia emphasized the necessity of reducing annual interest payments, which currently amount to $70 million to $80 million, and suggested relocating some positions into city proprietary departments to safeguard jobs.
The proposal includes over 2,700 cuts, affecting about 5% of the workforce, with the potential savings estimated at $225 million. City officials are also pursuing labor negotiations and state assistance to mitigate layoffs amid dwindling tax revenues and rising liabilities.
David Green, president of Service Employees International Union Local 721, urged a thorough examination of city expenditures and reiterated the importance of working collaboratively to explore innovative solutions to the financial crisis.
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