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Mayor Karen Bass Proposes Budget with Layoffs to Address $1 Billion Deficit

The 2025–26 budget safeguards fire services and homelessness programs but includes up to 2,000 layoffs as L.A. restructures amidst fiscal and intergovernmental shifts.

Karen Bass (L) speaks after being sworn in as the Mayor of Los Angeles by US Vice President Kamala Harris during her inauguration at LA Live in Los Angeles, California, on December 11, 2022.
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FILE - Los Angeles Mayor Karen Bass listens as President Donald Trump participates in a briefing in Los Angeles, Jan. 24, 2025. (AP Photo/Mark Schiefelbein, File)
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Overview

  • Mayor Karen Bass unveiled her 2025–26 budget proposal, aiming to close a nearly $1 billion deficit with workforce reductions and departmental cuts while protecting fire services funding.
  • The proposal includes up to 2,000 layoffs, reduced from an initial list of 3,500 positions, with final decisions pending potential state financial relief.
  • The Inside Safe homelessness initiative remains fully funded, with the mayor emphasizing its importance despite rising program costs and city council concerns.
  • The Los Angeles County Board of Supervisors has approved plans to defund LAHSA and establish a new homelessness services department by early 2026, reallocating funding by mid-2026.
  • Violent crime in Los Angeles saw a notable decline in 2024, with homicides down 14% and shooting victims down 19%, informing police staffing and budget considerations.