The budget includes 750 layoffs. Approximately 3,500 positions will be left vacant. Nearly every city employee will face mandatory pay cuts or mandatory furloughs of 16 or 26 days.
The city is facing a $485-million deficit next year.
"We start by recognizing that L.A.'s long-term fiscal sustainability goes beyond just one budget year. One year of cost-cutting won't solve this crisis," said the mayor during the speech. "We must make lasting structural changes that not only balance this year's bottom line, but puts us back in the black for future forecasts."
Under the budget, mandatory unpaid furloughs will require 26 days for employees who take pay raises, 16 days for those who do not.
Hiring of Los Angeles Police officers would only be for vacancies. Street repairs will be sharply delayed.
General Services will get the biggest hit. If the city council approves the mayor's proposal, nearly 500 jobs will be cut, including everything from security guards to parking attendants in city garages.
Street Services stands to lose more than 350 jobs, and the city's libraries, which have already dealt with cuts in hours, may lose more than 300 employees.
The proposed cuts would come on top of the 105 already laid off by the city this year. Officials said the measures could reduce the deficit by about $65 million.