After facing widespread criticism over handling the wildfires that destroyed Southern California in January, Democratic Los Angeles Mayor Karen Bass is tackling another crisis as the city faces a growing fiscal deficit.

City administrator Matt Sabo; I warned At the city council meeting on March 19, Los Angeles is currently facing a fiscal deficit of approximately $1 billion between 2025 and 2026. Budget disparities have been exacerbated significantly by costly litigation, substantial increases in pay for city employees, and increased costs associated with wildfires.

Szabo said Bass’ upcoming budget proposal, which aims to save between $500 million and $900 million, warned that it would close the deficit but would require “a very difficult cost-cutting decision.” He added that there may be a need to remove layoffs due to rising budgetary issues in the city. (Related: Affluent towns with cash shortages under Blue State’s strict affordable housing policy)

“We’re not looking at dozens of layoffs or thousands of layoffs, we’re looking at thousands,” Szabo said. “We may need to layoffs, but that’s not the only solution.”

“As we face these economic headwinds, we can tell you that the mayor is absolutely committed to saving as many jobs and urban services as possible,” Szabo added.

Base claimed on March 19th. statement Her city’s budget struggles have been exacerbated by rising costs associated with the series of wildfires that erupted in January, which is what it is I was killed At least 29 people have destroyed thousands of homes and evacuated hundreds of thousands of residents.

City officials, including Bus, received a major backlash over how public funds were spent before the wildfires as Los Angeles reportedly cut the fire department’s budget by $17.6 million between fiscal 2024 and fiscal 2025, while also funding a range of diversity, equality and inclusion (DEI) efforts.

Bass is currently facing recall efforts mainly due to widespread criticism of the city’s handling of wildfire responses.

In her statement regarding the city’s proposed budget, the mayor also brought attention to “downward national economic trends” that she said was affecting the city’s finances, and turned her attention to “extreme uncertainty” from the perspective of federal funds.

“I think economic ‘uncertainty’ is an unrealistic, glossy object,” John Moolach, director of the Center for Public Accountability at the California Institute of Policy Research, told the Daily Caller News Foundation when asked about Bass’ comments. “The economy is on the way. Pension systems are doing well to get the annual forecast returns they need to win. Wildfires, that’s a handy excuse, but economic uncertainty isn’t. [city employees’] Pensions and other post-employment benefits that come back to roosts. ”

California lawmakers on Monday called for nearly $2 billion from the state legislature to cover LA’s budget gap and wildfire relief costs. It has been reported. Similarly, Democrat California Governor Gavin Newsom request Nearly $40 billion for Wildfire Aid from Congress in February.

Some estimates predicting damage from the 2025 wildfire could exceed $250 billion, According to To the Los Angeles Times. California Total funding for fire prevention, resource management and fire prevention increased from $800 million in 2005-2006 to an estimated $3.7 billion in 2021-2022. According to It calms down.

The mayor was also subject to extensive public scrutiny. He is overseas in Africa, attended Ghana’s President John Dramani Mahama’s inauguration, despite allegations that he claimed when the fire first erupted in Los Angeles County. While on the 2021 campaign trail, she would not travel abroad if she was elected. Shortly after the bass returned to the US, she faced it Sky News Reporter David Blevins asked if he was owed “an apology for being away while his home was burning.” Bass did not provide responses, particularly to reporter investigations.

Additionally, city officials oversaw fire response CIRIS while the fire hydrant was dry and the Palisade fire was furious. Former Los Angeles Fire Station (LAFD) Christine Crowley was fired on a base on February 21 after not sending firefighters to combat the Palisade and Eton fires, but Crowley also received public backlash against her support for the department’s DEI policy.

“Los Angeles faces many challenges,” Patrick Tuohey, co-founder and policy director of The Better Cities Project, told DCNF. “There are also more liability claims due to motor vehicle collisions by the LAPD and the Department of Health as well as costs associated with the wildfires in LA.”

Los Angeles is expected to pay at least $320 million this fiscal year to resolve claims and lawsuits against the city over fraudulent activities such as injuries and police misconduct. It has been reported. Especially the Blue City Paid A liability claim of nearly $472 million between 2020 and 2023.

“Last year, LA increased its generous 22% wages to city employees through 2028, increasing sick leave payments from 50% to 100%,” Tuohey told DCNF. “As a result of the increased spending and the deficit it contributed, the city will need to fire employees and cut services.”

In April 2024, Los Angeles City Council approved a new contract with the Labor Group. It has been reported. The city council has also approved a major salary increase. Police officer, Private employees And the firefighters, include A four-year, $203 million contract with a union representing LAFD officials.

(Photo: Smith Collection/Gado/Getty Images)

Many of the LA’s expenses have been rising in recent years, but the revenues of its general funds have declined. It is below the forecast of less than $13 million as of January, According to In a February report from the city’s management office.

“It’s just like that. We knew it. [LA’s budget crisis] Moorlach told DCNF.

Bass plans to release the proposed 2025-2026 budget by April 21st.

Bass ‘Office did not respond to DCNF’s request for comment.

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