Mayor Bass signs agreement to avert layoffs of LA municipal employees

LOS ANGELES (KABC) -- Mayor Karen Bass on Tuesday signed an agreement that she said will avert the planned furlough of some municipal employees and all remaining civil service layoffs for fiscal year 2025-26, an outcome resulting from months of negotiations with labor unions.

Union and city leaders were all smiles when Bass made it official by signing the document.

"I remember in April when I gave my state of the city speech, and unfortunately had to announce the state of the economy in the city at that time in April of this year was going to result in the potential layoffs of 1,600 city workers," Bass said. "Well, I am here today to tell you that this has been completely everted."

In April, the mayor had proposed more than 1,600 layoffs as part of an effort to eliminate a nearly $1 billion budget deficit caused by overspending, skyrocketing liability payouts, lower-than-expected tax revenues, and a weakening economy, among other challenges. The number of layoffs was later reduced to 600 after budget maneuvering by the City Council.

The heads of city departments were able to fill vacancies with current employees. The city got creative in shuffling city employees around .

"This was always about protecting our skilled city workforce who trained for years and honed their crafts as building inspectors, truck operators, mechanics, engineers, city planners, street lighting electricians, crime and intelligence officers," Bass said. "Zoo animal keepers and so many more roles that are responsible to delivering vital services to Angelenos. "

The city's 2025-2026 budget is $14 billion. There are approximately 50,000 L.A. city employees.

"As of now, the billion-dollar deficit was closed and as this budget is implemented," the city's Chief Administrative Officer Matt Szabo said. "We are projecting structural balance in the following fiscal year and along with surpluses in years three and four. "

Said Yvonne Wheeler, 1st Executive Vice President of the California Federation of Labor Unions: "This is more than a budget decision. This is a promise kept to the people who keep our city running every day. From sanitation crews to street services, from clerks to crossing guards, engineers to emergency responders. Our city workers are the backbone of the city of Los Angeles. "

City News Service contributed to this report.