As the city of Los Angeles faces a staggering budget gap of nearly $1 billion in the 2024-2025 fiscal year, small and big changes are likely to come, impacting the lives of every day Angelenos.
After Mayor Karen Bass promised to “leave no stone unturned” to make up for the budget shortfall, this is what’s likely to happen in the coming months.
Thousands of layoffs
Laying off many city employees will be “inevitable,” according to Public Works Commissioner Matt Szabo, who said his team was looking at thousands of job cuts.
But as some economists are predicting stagflation and a reduction in federal funding toward the heavily Democratic city, Szabo said the LA mayor is mindful of the fact that many Angelenos and their families will feel the ripple effects.
“I can tell you that the mayor is absolutely committed to preserving as many jobs and city services as possible as we face these economic headwinds. And that means that we need to take other measures immediately to curb the cost increases that are contributing to the deficit,” Szabo said.
The city told NBC Los Angeles that the job cuts will not impact the Los Angeles Police Department and the Los Angeles City Fire Department.
Mayor Bass is also asking city officials to see how they can reduce contract expenses as well as “structural reforms” as a cost-cutting measure, Szabo added.
Higher trash bills
The city may be looking to make up the budget deficit by adjusting the city’s solid waste management program, which could lead to increased trash rates for single-family home owners.
While renters across the city are carrying the burden of solid waste collection through RecycLA, Szabo contended many homeowners are benefiting from discounted rates, subsidized by the city’s general fund.
If the city is making an adjustment to collect $200 million that went toward subsidies, those discounts offered for the low-income, elderly or people with disabilities could disappear or be reduced.
Szabo said the sanitation department will present a proposal to the city council while urging councilmembers to quickly approve the changes to “achieve full cost recovery.”
Currently, single-family homes pay around $75 bimonthly for trash, and that amount could increase to $155 by 2028.
Liability payouts
The city attorney’s office will likely fight more vigorously against liability claims against the city in an effort to reduce payouts.
Over the last three years, liability claims cost the city over $300 million, Szabo said.
“Plaintiff attorneys are getting rich at the expense of taxpayers and city services,” the commissioner told the city council Wednesday. “Every dollar that goes towards a liability payout due to a lawsuit is reducing a city service.”
Szabo added that the city attorney is working with lawmakers to introduce a bill to cap damages, urging city councilmembers to use their connections in Sacramento to support the proposal.
[publish_date
