LOS ANGELES (CNS) – Los Angeles Mayor Karen Bass Monday unveiled a proposed $14.8 billion spending plan for fiscal year 2026-27, maintaining funding for what she has set as priorities such as addressing homelessness, accelerating affordable housing projects and supporting police hiring.
Officials described the proposal as a “balanced budget,” consisting of $8.59 billion for the general fund and $6.26 billion in special funds, which are allocated for specific uses. City officials emphasized there are no planned layoffs or furlough days, however, the mayor has recommended the elimination of 149 vacant positions.
“We’ve worked hard to change L.A.’s direction on homelessness, public safety and basic city services, and this budget builds on that work so we can keep making progress,” Bass said.
The proposed spending plan hinges on projected revenue increases from several tax categories that are expected to offset some of the city’s cost increases.
The proposal sets a cumulative reserve fund of about 8.41% — or about $490 million in the reserve fund, $194 million in the budget stabilization fund and some $38 million for mid-year adjustments. Those dollars are allocated for emergency purposes, but in past years city officials used the money to address the city’s deficits and some initiatives.
Bass’ proposed budget is expected to provide $700 million to address homelessness, of which about $104 million will continue to support the mayor’s Inside Safe program.
Officials said they will spend more to address recreational vehicle encampments on the streets, and bolster initiatives to conduct oversight of program services.
On public safety, the proposal is expected to provide the Los Angeles Police Department with approximately $2.111 billion. Funding will prioritize the hiring of 510 new officers, though officials said they expect attrition of 510 officers as well.
Bass said the city aims to ensure LAPD’s force remains at 8,555 in the coming fiscal year. LAPD would also have funding to conduct use-of-force, de-escalation and mental health intervention training.
The Los Angeles Police Protective League in a statement said it supported Bass’ budget, and urged the City Council to support “our rank-and- file police officers and ensure that enough officers are available to provide backup and keep residents safe while patrolling our neighborhoods.”
LAPD is expected to conduct strategic deployment of officers and other resources to patrol neighborhoods hit by burglaries, and commercial corridors targeted by retail theft, and crack down on street takeovers, as well as continue efforts to address copper wire theft.
The mayor noted her proposal maintains funding for the Los Angeles Fire Department, and proposes about $42 million for the purchase of four new fire trucks and other vehicles.
Bass’ proposed budget sets funding for maintaining 500 crossing guards around schools, as well as sustaining unarmed response programs such as CIRCLE, UMCR and GRYD services.
Lastly, the spending plan increases funding for street and sidewalk repair, street sweeping, bulky item pickup and teams to address illegal dumping.
“We are making steady steps toward stability, certainly compared to where we were last year, where significant service reductions were required,” City Administrative Officer Matt Szabo said, pointing to the nearly $1 billion budget deficit the city closed during the last budget process.
He noted the city is not in a place to restore wholesale services that were reduced, but again emphasized Los Angeles has been stabilized.
City officials noted they are planning to add about 500 new positions, a mix of long-term and short-term authorities, mainly in departments dedicated to infrastructure.
Szabo said the city is looking to protect itself financially by creating a multi-year strategic plan, financial plan and capital plan, which aim to decrease fluctuation year-to-year and ensure the city invests on priorities already established.
Additionally, the city is looking to reduce its liabilities. Szabo said officials may consider acquiring insurance and establishing greater departmental accountability policies.
Szabo also noted the city must be more transparent when it comes to its labor negotiations, and how those contracts impact the city’s budget.
With the budget formally released, it will now be forwarded to the City Council’s Budget and Finance Committee for consideration. Over several weeks, the committee, overseen by Councilwoman Katy Yaroslavsky, will review the spending proposal, hold hearings with department heads and make potential changes based on the council’s priorities.
The City Council and Bass must approve a final budget prior to the start of the next fiscal year, which begins July 1.
In response to the mayor’s spending plan, Council President Marqueece Harris-Dawson and Yaroslavsky released a joint statement thanking Bass for the balanced budget amid a challenging time for the city.
“Our focus as a council will be to deliver a final budget that builds on this proposal in a way that protects essential services and reflects the priorities of the communities we represent,” Harris-Dawson and Yaroslavsky said in their statement.
Yaroslavsky is expected to host a “community conversation” Tuesday via Zoom to review the mayor’s proposal and hear from Los Angeles residents. The meeting is scheduled for 6 p.m. at docs.google.com/forms/d/e/1FAIpQLSeaK01fFKH2Tp4jd8vSKdPtYS6UblvJb- co_DpAN0vplHS5-Q/viewform.
The budget committee will conduct its first budget hearing at 1 p.m. Friday in the Council Chamber at City Hall, with opening remarks by Yaroslavsky. Black Lives Matter Los Angeles and the People’s Budget LA Coalition are expected to present their budget proposal and priorities they’d like the city to follow.
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