Mayor Karen Bass has proposed the layoff of over 1,600 government employees in Los Angeles as a measure to address a nearly $1 billion budget deficit. This financial shortfall arises amid an economic downturn and the expensive task of rebuilding the Pacific Palisades neighborhood, which was devastated by a wildfire in January. The proposal, which comes as Bass prepares for reelection, reflects a challenging fiscal environment influenced by uncertainty at the federal level, increased costs for city worker salaries and benefits, and the economic slowdown.
In her address to the city council, Bass described the municipal workforce as the “city’s greatest asset” but emphasized that workforce reductions were a “last resort” necessary to balance the budget. The Service Employees International Union, representing over 10,000 city employees, expressed opposition to the proposed layoffs, vowing to seek alternative funding sources to prevent job cuts.
Last month, both Bass and the city council appealed to the state capital, Sacramento, for nearly $2 billion in disaster recovery assistance. They face a significant financial challenge as the projected deficit approaches $1 billion. Bass intends to return to Sacramento to lobby for additional state funds that might help reduce the number of layoffs. The Pacific Palisades Fire resulted in the destruction of over 6,800 structures and claimed at least 12 lives.
The city council holds the authority to approve the spending plan for the fiscal year beginning July 1. The proposed layoffs notably exclude firefighters and sworn police officers. Mayor Bass’s plan draws parallels to past financial crises, such as during the 2008 recession when then-Mayor Antonio Villaraigosa also reduced government jobs and pushed for employee contributions to pensions and healthcare.
During the COVID-19 pandemic, then-Mayor Eric Garcetti avoided large-scale layoffs by implementing furloughs and offering early retirement packages to approximately 15,000 city workers. Despite the current financial difficulties, Bass maintained a positive tone in her speech to the council, highlighting a decrease in crime rates, including homicides, and progress in housing the homeless population. However, she acknowledged the persistent presence of homeless encampments across Los Angeles and the need for increased funding for housing initiatives, stating that there remains “much further to go.”
