Los Angeles budget committee considers Mayor Bass' proposed spending plan (2025)

Mayor Karen Bass' proposed spending plan aimed at closing a $1 billion budget deficit and addressing other financial challenges went before the Los Angeles City Council Budget and Finance Committee at a meeting Friday that included comments from the public.

The committee convened a special meeting Friday at Van Nuys City Hall to discuss and possibly revise the mayor's proposed $13.9 billion spending plan for the 2025-26 fiscal year. Members of the public could speak at the meeting about the budget proposal unveiled earlier this week.

Hundreds of people showed up, including employees, volunteers, and recipients of City of Los Angeles services. Dozens of seniors and organizations that provide services like in home meal delivery turned out to push back against plans to consolidate the LA Department of Aging.

The departments ofAging;Economic and Workforce Development; andYouth Developmentwould be consolidated under theCommunity Investment for Families Department.

"The proposed budget is asking for the programs and services that are under the department of aging to go under a separate unrelated department," said Jenna Hauss, president of Onegeneration. "So we are going to be losing our voice and we are going to be losing leadership."

Some people outside the building rallied in support of Animal Services, which would face reduction under the plan. The Los Angeles 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.

A second committee meeting with another public comment period is scheduled for Monday.

TheFiscal Year 2025-2026 proposed budgetwas released Monday after the mayor addressed abroad range of challengesfacing Los Angeles, includingwildfire recovery, at herState of the City speechinside Los Angeles City Hall. Bass said herbudget proposalwill "deliver fundamental change to the way the city operates."

Bass has proposed cutting more than 2,700 city positions with 1,647 layoffs and the elimination of 1,053 vacant positions. Those savings, among other new revenue sources, are expected to lower the city's nearly $1 billion deficit to $800 million, according to the mayor.

The figures could change as the budget process advances toward final city council consideration in June.

The proposal also calls for the consolidation of several city departments.

Despite the personnel cuts, the proposed budget would be an 8.2% increase over the adopted spending plan for the 2024-25 fiscal year.

Mayor Karen Bass State of the City Address highlighted progress in the Palisades but also discussed a nearly $1 billion budget deficit. Alex Rozier reports for NBCLA at 6 p.m. on April 21, 2025.

The deficit is a result of a 35% reduction in tax revenue, overspending, an increase in liability payouts, labor costs and fire recovery efforts, the city said.

As a result of labor contracts, city employees will see an increase in salaries, costing an estimated $250 million for the 2025-26 fiscal year.

"My proposed budget is balanced but we are facing dire economic times," Bass said in a statement. "It's more important now than ever that we work closely with our state and labor partners, especially as we rebuild in the Palisades."

Bass traveled to Sacramento Wednesday to lobby state officials for a $2 billion relief package. Gov. Gavin Newsom will announce revisions to the state budget mid-May, which at that time city officials may have a better idea of where they stand financially.

Under the City Charter, Los Angeles must finalize its budget before the start of the next fiscal year, July 1.