Facing ‘extraordinary’ pressures, LA County CEO unveils tight 2025-26 budget
By ANUSHA SHANKAR
City News Service
Multiple Los Angeles County government departments would face 3% budget cuts in the coming fiscal year under an austere recommended spending plan unveiled on Monday, April 14 that also includes the elimination of 310 vacant positions — but no layoffs — and other cutbacks.
The $47.9 billion proposal reflects efforts to “offset extraordinary budget pressures,” according to a statement from the county, including more than $1 billion in costs related to the January wildfires. The county will also begin to feel the pain of a proposed $4 billion settlement of nearly 7,000 claims of sexual abuse against county workers, mainly at probation camps and halls.
Presenting the budget to members of the media, L.A. County CEO Fesia Davenport said the county is also facing the possible loss of hundreds of millions of dollars in federal funding.
“Our revenue outlook is challenging — to put it mildly,” Davenport said. “The amount of new ongoing funding in this budget is at a five-year low.”
With the change in presidential administration, at least 13% of the county’s budget that comes through federal assistance, and billions in grants and funding, could be at risk, she said
The state budget is also at a risk of losing federal funds, which could trickle down to impact the county.
“We are already seeing it happen,” Davenport said, highlighting the recent federal proposed rescinding of $45 million in Public Health funds.
“We are in uncharted territory with these simultaneous pressures on our budget,” Davenport said in a statement. “Any of these alone would be daunting, but taken together these challenges — the wildfires, the AB 218 (sex abuse) settlement, the threat of deep cuts in federal funding — are cause for great concern.”
Davenport stressed the abuse settlement is “by far the costliest in county history.”
With more than 6,800 claims, the settlements are expected to be paid out through a combination of county funds, budget cuts and borrowing over a number of years, if approved by the county Board of Supervisors.
Davenport said the impact of the payments could take a hit on the county budget through 2050-51.
Expenditures towards fire recovery are also expected impact the county budget over years, reaching as high as $250 billion, some of which Davenport said would be reimbursed by Federal Emergency Management Agency (FEMA) in the coming years.
A large part of the budget is also affected by a 41% decline in home sales driven by higher interest rates, which directly put pressure on property tax revenue, she said.
In addition to eliminating 310 vacant positions, the budget proposal also includes $50 million in cuts that will be achieved by cutting supplies, delaying equipment purchases and reducing the scope of some county programs. Overall the budget includes roughly $88.9 million in targeted cutbacks.
“The hope is that as we manage, very carefully. all of the pressures and we look at our revenues, and we do things like not incur new expenses — we don’t put ourselves in a position where we have to implement layoffs,” Davenport said.
County officials insisted that despite the cost-cutting, the spending proposal “is committed to sustaining the county’s essential safety net responsibilities and to funding key priorities set by the Board of Supervisors.”
Funding to homeless programs, youth development, parks and recreation and other services would continue to remain unharmed.
Close to $12 million is allocated in the spending plan to ramp up Measure G efforts — a ballot measure passed in November 2024 to overhaul the L.A. County Charter.
Davenport is scheduled to present the budget proposal to the Board of Supervisors on Tuesday.
Following the board presentation, public hearings will be scheduled for May and final changes will be adopted to the recommended budget in June.
The supplemental budget is expected to be adopted in September.