LOS ANGELES—A top financial adviser to the city of Los Angeles Wednesday shared a grim outlook for fiscal year 2025–26, saying elected officials need to address a projected $1 billion gap that will require tough financial decisions and could lead to thousands of layoffs.
City Administrative Officer Matt Szabo said Mayor Karen Bass’ proposed budget, which will be released on April 21, will close that gap, but it will require difficult “cost-cutting decisions.” He warned that the severity of revenue declines and rising costs have created a budget gap that makes layoffs “nearly inevitable.”
“We are not looking at dozens or even hundreds of layoffs, but thousands,” Szabo said. “While layoffs may be necessary, it cannot and will not be the only solution.”…