Supporters had hoped to raise money by leasing the facilities to private operators, but the city administrative officer said no one submitted a bid to run the garages.
Business owners had complained about the original plan, saying it would lead to high parking rates that would drive away customers.
So the city added restrictions on how much operators could charge customers.
However, that appears to have driven away the private bidders, who question whether they could make a profit without higher parking fees.
L.A.'s current deficit is $54 million. Fixing that gap could require more furlough or layoffs, as well as service cuts.