Mayor Bass proposes more than 1,600 layoffs: What departments are on the list?
LOS ANGELES (KABC) -- Los Angeles Mayor Karen Bass unveiled a proposed $13.9 billion municipal budget for fiscal year 2025-26, which includes more than 1,600 layoffs and the consolidation of four city departments in an effort to eliminate a nearly $1 billion deficit.
Despite the cuts, the proposed budget would be an 8.2% increase over the adopted spending plan for 2024-25.
What city departments are on the layoff list?
The chart below shows a list of the proposed eliminated positions, which include general, special and grant-funded roles.
The city's transportation department will be hit the hardest, with more than 400 positions - both filled and vacant - set to be cut. Plus, 403 civilian positions at the Los Angeles Police Department will also be eliminated.
(Can't see the chart below? Tap here)
Bass initially announced the possibility of layoffs during her State of the City address on Monday.
"I would like to take a minute to address our city workforce directly," she said. "Make no mistake, you are the city's greatest asset, but I want to be straight with you. My proposed budget, unfortunately, includes layoffs, which is a decision of absolute last resort."
TO VIEW THE PROPOSED BUDGET, CLICK HERE.
Meanwhile, the fire department would see an increase of about $103.7 million and the addition of 227 new positions. The police department would receive an increase of $6.1 million to its nearly $2 billion operational budget.
The budget proposal will be reviewed and likely be revised over a series of meetings led by L.A. City Council.
David Green, the president of SEIU Local 721, which represents 10,000 city workers, said he plans to fight back.
"Show us the money," he said. "We want to look at the numbers and look at every single dollar. This shouldn't be the first place people go, to lay off city workers, providing valuable city services."
What led to the L.A. city budget deficit?
The deficit is a result of overspending, liability payouts, labor contracts and lower-than-anticipated tax revenues.
"Cities like ours are going through challenging economic times across the nation," Bass said. "Turmoil and uncertainty from Washington and a slowing economy are causing lower revenue projections to the tune of hundreds of millions of dollars."
The city's business tax and sales tax have slowed; 35% of the city's revenue comes from property taxes. The general fund revenue is at $8 billion, but it was projected to be at $8.14 billion.
In the past, Los Angeles averaged $100 million per year in liability payouts. However, this fiscal year, the city liability payouts were $300 million, according to City Administrative Officer Matt Szabo.
Labor contracts increased by $259 million.
"Liability settlements have tripled from backed up lawsuits during the pandemic in uncapped damages," Bass said. "Combined with personnel costs and, of course, the fires and rebuilding -- all together, Los Angeles, we have a very difficult budget to balance."
Is there a way to prevent the budget deficit?
Bass is hoping to lower the L.A. city budget deficit by getting help from the California Legislature.
She is headed to Sacramento later this week to ask lawmakers for additional funding in order to curb the shortfall.
Where does funding for L.A. homelessness stand?
With a recent decision to move funding away from the Los Angeles Homeless Services Authority (LAHSA) at both the city and county level, Bass and the City Council may also consider adjusting their approach to resolve the homelessness crisis.
The county Board of Supervisors advanced a proposal to create its own department to manage regional homeless services, effectively defunding LAHSA -- a joint city-county agency criticized for inefficiency, waste and lack of transparency. LAHSA officials said the agency grew rapidly in recent years and has since taken steps to address those issues.
The new county agency is expected to be in place by Jan. 1, with all funding pulled from LAHSA and transferred to the new department by July 1, 2026.
What else did Bass highlight in her State of the City address?
The mayor discussed the city's rebuilding efforts, largely focusing on Pacific Palisades, which was devastated by January's wildfires. She touted a drop in homelessness, quick wildfire recovery efforts and a decrease in violent crime.
"The aftermath of this disaster weighs on our city, which already had huge challenges before us," she said. "We feel it every day. The strain of the housing crisis, the tragedy of the homelessness crisis. We worry about public safety and the unpredictability of our streets. We worry about a changing climate that brings in increasing weather extremes, and we worry about rising costs and economic uncertainty."
"But I want you to know that I see it. We are not here to gloss over difficulties. We are here... to make real change."
That entails reforming how the city works and rebuilding a city that "works better for everyone that calls L.A. home," the mayor said.
Bass highlighted during her speech bureaucratic inefficiencies slowing down services, saying "the system is broken."
During her speech, Bass addressed immigration, saying the city will always stand with the immigrants in Los Angeles. The statement received a standing ovation from the people in the chamber.
City News Service, Inc. contributed to this report.
