The money comes from higher-than-expected revenues and savings from department cuts.
The Budget and Finance Committee agreed on Tuesday to use half the money to avoid some layoffs until Jan 1. The committee has not decided what to do with the other half of the funds.
The money came from various sources including one-time revenues, an increase in parking fines and unused funds across a wide variety of city departments.
The approved budget restored about $40 million to the Los Angeles Fire Department, which has been the subject of recent scrutiny after officials admitted improperly reporting emergency response times. The committee set apart $500,000 for an independent study of the department's response times.
The committee's budget plan goes to the full City Council for debate on Friday and a vote on Monday.
City News Service contributed to this report.