In an effort to address a nearly $1 billion budget shortfall, Los Angeles Mayor Karen Bass has proposed laying off over 1,600 municipal employees as the city faces a sluggish economy and the financial burden of rebuilding the Pacific Palisades neighborhood, which was devastated by a wildfire in January. This challenging decision arrives as Bass, a first-term Democrat, prepares to run for reelection next year.
Highlighting the gravity of the situation during a speech to the city council, Mayor Bass described the municipal workforce as โthe cityโs greatest asset,โ but indicated that job cuts are necessary due to uncertainties from federal sources, rising costs for employee salaries and benefits, a slowing economy, and the extensive reconstruction efforts in the Pacific Palisades.
โWe are faced with a difficult budget to balance,โ Bass remarked, labeling the proposed job cuts as a โlast resort.โ The mayorโs proposal has sparked a strong response from the Service Employees International Union, Local 721, which represents over 10,000 Los Angeles city employees. The unionโs president, David Green, emphasized their commitment to explore alternate funding solutions to prevent job losses.
โWe refuse to let disconnected bureaucrats balance their budgets at the expense of city workers,โ Green stated in response to the proposal.
Pending a nearly $1 billion shortfall, both Mayor Bass and the city council have requested nearly $2 billion in disaster recovery assistance from Sacramento. Bass also plans to continue lobbying for additional state funds to mitigate the anticipated job cuts. The recent Palisades Fire resulted in the destruction of over 6,800 buildings and claimed at least 12 lives.
Ultimately, the council is responsible for approving the cityโs financial plan for the new fiscal year starting July 1. Notably, the proposed job reduction does not include firefighters or sworn police officers.
Mayor Bassโ initiative to reduce the workforce harks back to the financial struggles during the 2008 recession when former Mayor Antonio Villaraigosa was compelled to eliminate numerous government jobs to maintain budget stability. Villaraigosa also initiated city employeesโ financial contributions to their pensions and healthcare for the first time.
During the COVID-19 pandemic, former Mayor Eric Garcetti implemented furloughs and early retirement options for approximately 15,000 city workers, but managed to avoid substantial layoffs.
Despite the cityโs financial challenges, Mayor Bass delivered a largely optimistic statement to the city council, noting reductions in crime rates, including homicides, and highlighting progress in moving homeless individuals into housing. Acknowledging persistent issues such as visible encampments around the city, she stressed the ongoing need for more funding to tackle the housing shortage.
โThere is much further to go,โ she concluded.