The City of Los Angeles faces a projected $1 billion budget deficit for the 2025–2026 fiscal year, leading embattled Mayor Karen Bass to call for laying off 1,647 city workers in her $13.95 billion spending plan released on Monday.
Los Angeles is grappling with several issues, including declining revenues, rising liability claims, and increased payroll costs. The toll of the January fires, which ravaged Los Angeles, has also added to increased city costs.
“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.”…