LA mayor proposes 1,647 layoffs, cuts to departments in FY 2025-26

LOS ANGELES (KESQ) - Mayor Karen Bass unveiled a proposed $13.9 billion municipal budget for fiscal year 2025-26 today, including a 1,647 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.   

The Department of Animal Services would see a decrease of $4.8 million to its operational budget and a reduction of 80 regular positions and 40 resolution-funded employees. Building and Safety would also see a reduction of about $2.9 million budget reduction with a loss of 31 regular positions.

Meanwhile, the Fire Department would see an increase of about $103.7 million and the addition of 227 new positions. Los Angeles Police Department would receive an increase of $6.1 million to its nearly $2 billion operational budget.  

In her budget proposal, Bass described delivering a "balanced" budget proposal for FY 2025-26, which will begin July 1. She also made a commitment to restore the reserve fund to 6% of general fund revenue, above the 5% city policy.

The budget proposal will be reviewed and likely be revised over a series of meetings led by L.A. City Council.   

"This budget makes investments to continue our progress on critical challenges like decreasing homelessness and crime while bringing the city's finances into balance and driving change including common sense consolidations of related departments,'' Bass said in a statement. "Homelessness is down. Crime is down. These are tough challenges, and our progress shows we can do anything in this city of limitless potential."  

According to city officials, the mayor considered 3,500 layoffs but was able to reduce that figure by deferring capital projects and adjusting expenditures.

Under the plan, the departments of Aging; Economic and Workforce Development; and Youth Development would be consolidated under the Community Investment for Families Department. Bass also proposed the elimination of the Health Commission, Innovation and Performance Commission and the Climate Emergency Mobilization Commission.

The Commission for Community and Family Services would be moved under the Community Action Agency-Community Action Board, and the Affordable Housing Commission would move under the Rent Adjustment Commission.   

Layoffs in the mayor's proposal would not impact sworn police officers or firefighters. The city would retain about 20%, or 120, more officers compared to 2024.

LAFD's operating budget would increase to fund 227 new positions, support more paramedics, as well as maintenance of vehicles -- an issue that came under criticism following January's wildfires.

Library, recreation and park facility hours would remain unchanged. There would be funding for projects such as the modernization of the L.A. Convention Center, improvements for Sepulveda Basin and parks in the San Fernando Valley and South L.A.

The city's financial crisis has been exacerbated by the wildfires in Pacific Palisades that also impacted property tax and other tax revenues. Additionally, the city has been plagued with liability payouts that have tripled this year. Meanwhile, federal trade and immigration policies have caused trouble for L.A. tourism.   

Labor contracts with the Los Angeles Police Department and unionized city employees -- each amounting to $1 billion at the end of FY 2028-29 -- have contributed to the city's fiscal concerns. The contracts were approved in the last two years, which city officials said were necessary to ensure workers were compensated fairly and at a competitive rate.   

Several departments across the board will be looking at reductions to their operational budgets. City Planning would have a $15.3 million decrease to its spending and a reduction of 187 positions. The City Clerk's budget would be reduced by about $1.3 million to $18.8 million, down from $20.1 million in FY 204-25.   

The City Attorney's Office would see an increase of $9.6 million to its budget, up from $176.3 million in FY 2024-25. Controller Kenneth Mejia's office would receive an increase of $2.2 million to $23.1 million compared to the $20.8 million allocated in FY 2024-25. The L.A. City Council would receive an additional $2.1 million, increasing it to $39.3 million from $37.2 million. The Mayor's Office would see a nearly $599,649 increase to the operational budget with no changes in positions.

The figures may change as budget hearings move forward.   

Councilwoman Katy Yaroslavsky, chair of the budget committee, commended Bass for making tough choices in a tough budget year.   

"My focus is on long-term solvency, building teams that are resourcedto do the work, and investing in the parts of city government that keep things running. In the weeks ahead, I look forward to hearing from Angelenos on the mayor's proposal, and carrying those voices forward as I work with the Mayor and my colleagues to shape a final budget that reflects our shared priorities,'' Yaroslavsky said in a statement.  

As elected officials consider ways to increase revenues, some options may lead to higher taxes, fees, and other costs for taxpayers. The city is also considering bond measures to create revenue streams for specific needs, such as maintenance and construction of fire stations.

The City Council recently approved a plan to increase trash collection fees, the first rate adjustment in 17 years. Elected officials are hoping to start the new fees by January 2026, but further approvals are required before the rate change can be enacted.