Los Angeles city officials kicked off budget hearings for the 2023-24 fiscal year in earnest on Wednesday, April 26, with an overview of Mayor Karen Bass’ proposed spending plan and discussion of budgets for the city attorney and controller’s offices — and a few other departments.
The mayor has proposed a $13 billion budget for the fiscal year that begins July 1. Her plan includes a record $1.3 billion to address the homeless crisis and increased funding for the Los Angeles Police Department, in hopes of hiring hundreds more sworn officers by June 2024.
City Administrative Officer Matt Szabo told the city council’s budget committee members that the proposed budget is structurally sound, with “healthy” reserves totaling 10% of general fund revenues.
The proposed budget relies in part on a $115 million transfer of money from a reserve fund, which Szabo said his office typically cautions against — except that there was a “significant overperformance” in revenues this year. He called that overperformance the “silver lining” to a “dark cloud” that arose due to the end of COVID-19 federal relief dollars for the city, an economic downturn, and inflation.
Szabo also informed budget committee members that after the mayor proposed her budget last week, the city learned that in terms of employee benefits, the healthcare premium rate is expected to increase and cost the city an additional $8.6 million.
Additionally, almost all civilian employees working under a labor agreement with the city have contracts that expire this December, but the proposed budget does not account for any potential increases in compensation for these employees, Szabo said.
City Councilmember Bob Blumenfield, who chairs the budget committee, did not mince words, noting that the federal government has stopped providing COVID-19 pandemic relief dollars to help bolster city budgets.
“Unlike last year, when we were flush with last-minute funds from the federal government,…
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