Mayor Karen Bass, City Council members request nearly $2 billion from state for budget help
LOS ANGELES (CNS) -- Following a one-day trip by a delegation of City Council members led by Mayor Karen Bass to Sacramento, state lawmakers requested nearly $2 billion in funding to aid Los Angeles amid a projected $1 billion budget deficit next fiscal year as a result of January's wildfires and other challenges.
"Meetings were productive," Bass told City News Service in a short telephone interview Monday evening. "It is not as though we expected to walk away with a check, but we absolutely walked away with encouragement and support."
"We have homework we need to do in terms of getting the Legislature some more specific information in a couple of areas, but we are very encouraged," she added.
Bass and four City Council members traveled to Sacramento Monday and met with Gov. Gavin Newsom, and Assembly Speaker Robert Rivas, D-Hollister, and Assemblywoman Tina McKinnor, D-Inglewood chair of the Los Angeles County legislative delegation.
They also met with state Senate President Pro Tempore Mike McGuire, D- Healdsburg, Senate Budget Committee Chair Scott Weiner, D-San Francisco, and Sen. Maria Elena Durazo, D-Los Angeles, vice chair of the Los Angeles County legislative delegation. Collectively, the delegation's 39 assembly members and state senators represent nearly 10 million people.
"Los Angeles is facing a budget crisis while recovering from devastating and unprecedented wildfires, and it's important that we advocate directly to state leaders for support," Bass said in a statement.
After meetings Monday, McKinnor and 22 other members of the Legislature, who represent the Los Angeles region, sent a letter to the Assembly Budget Committee requesting support for Los Angeles.
In the letter, state leaders broke down the requested $1.893 billion into the following:
-- $638 million for protecting city services under budgetary strain and addressing liability costs;
-- $301 million would serve as a loan to cover disaster recovery expenses pending Federal Emergency Management Agency reimbursement;
-- $750 million would serve as another loan to support the city's effort in upgrading the electric power grid ($700 million) and funds to incentivize electric upgrades and appliances, as well as to upgrade the traffic signal system in the Pacific Palisades ($50 million);
-- $56.5 million to aid in fire safety and fire suppression measures such as brush clearing, fire department equipment/vehicles, and to help reconstruct a decommissioned Palisades reservoir;
-- $72.8 million for several projects to support workers and residents through the operation of another one-stop rebuilding center, waiving permitting fees, hiring Angelenos for fire clean-up and other recovery work, interim library and recreation/park activities, and to provide emergency housing vouchers; and
-- $75.5 million for public assistance measures via Project Roomkey and non-congregate shelters
"We appreciate your consideration of these requests and look forward to working with you to secure the necessary resources for our communities impacted by this devastating natural disaster," the letter reads.
Council President Marqueece Harris-Dawson, Councilman Bob Blumenfield, Councilman Adrin Nazarian, and Councilwoman Katy Yaroslavsky, chair of the budget committee, joined Bass for the trip.
Harris-Dawson in a statement noted the city is facing urgent fiscal challenges. It is fighting for funding to "protect services, strengthen wildfire resilience, and secure a sustainable future for Angelenos," he added.
Yaroslavsky said the trip wasn't about a "one-time fix," but rather about laying a foundation for a more resilient city.
Bass served in the Assembly from 2004-10, was its speaker from 2008-10 and a member of the House from 2011-22.
The mayor touted her experience and said relationships at the state and federal level are "very important." Blumenfield and Nazarian also served in the Assembly.
While the city may not receive state aid immediately, Bass told City News Service she anticipates meetings with state lawmakers will move the needle for Los Angeles.
"You know the budget here, there will be the May revise, which happens 30 days after taxes are due," Bass told CNS Monday afternoon. "So, the state will have a much better picture of its economy."
"They prepare the budget, which is due by mid-June, and so hopefully, there will be some additions in that budget that will provide resources for the city and the county," Bass added.
The trip to Sacramento comes a week after city officials learned they face a nearly $1 billion gap in the next fiscal year. Bass and the City Council are already exploring potential solutions to right-size the budget -- which will require tough financial decisions that could lead to thousands of layoffs and cuts to services.
City Administrative Officer Matt Szabo reported a $61 million starting gap, which will be exacerbated by $315 million in lower-than-anticipated revenue from taxes, $100 million in liability payouts that are expected to increase, $275 million needed to restore the reserve fund, $80 million related to solid waste fees, and $100 million to cover pensions for members of the Los Angeles police and fire departments.
The financial crisis can also be attributed to lower-than-anticipated revenue from taxes and new labor contracts with police, civic workers and firefighters, which are expected to add another $250 million in costs for the 2025-26 fiscal year.
He also continued to warn of rising legal payouts. Szabo previously reported $112 million in liability costs, and most recently projected that by the end of the 2024-25 fiscal year that amount will increase to $320 million.
In a letter, Bass said she will "deliver fundamental change in the way the city operates." She directed Szabo to report to her with strategies to "reduce spending significantly while protecting essential services."
"This year, we must deliver fundamental change in the way the city operates and base our budget on how the city can best serve the people of Los Angeles and to best use their scarce budget dollars," Bass said in her statement.
According to Bass' office, downward economic trends mean the city is projected to take in hundreds of millions of dollars less than previously projected. In addition to these trends, costs associated with the recent wildfires are also expected to add to the burden.
The mayor is expected to release her proposed budget April 21.
