The Economic Development and Jobs Committee of Los Angeles convened on May 6, 2025, to address pressing issues surrounding the city’s budget crisis and the potential impact of proposed wage increases on local businesses and workers. The meeting highlighted a significant budget deficit nearing $1 billion and the looming threat of over 1,600 layoffs across various city departments.

The session began with a call for responsible budgeting that prioritizes job retention and essential city services. A representative from BizFed emphasized the detrimental effects of proposed budget cuts, particularly to the Office of Wage Standards, which could delay the enforcement of labor laws by up to four years. The speaker urged the committee to reconsider costly new mandates that could exacerbate the current economic crisis, particularly for small and minority-owned businesses still recovering from the pandemic.

Greg Plummer, CEO of Concord Collective, shared his experience of having to lay off 45 employees due to economic challenges at LAX. He expressed concerns about the rising costs of benefits and the impact of wage increases on operators' ability to retain staff. Plummer's testimony underscored the difficult choices many business owners face in balancing employee welfare with financial viability.

As the meeting progressed, various stakeholders voiced their opinions on the proposed living wage increase. Chad Mender, president of the LAX Coastal Chamber of Commerce, warned that such an increase could devastate the tourism industry, which is crucial for the city’s economy. He cited recent closures of local businesses and urged the committee to reconsider the timing of the wage hike.

In contrast, policy analyst Nick Sturtblak presented data suggesting that raising wages for tourism workers could stimulate regional growth and generate additional tax revenue. He referenced successful outcomes in Long Beach following similar wage policies, arguing that a living wage could alleviate poverty and enhance local economic circulation.

Rabbi Robin Podolski and other community leaders echoed the need for fair wages, emphasizing the moral obligation to support workers who are the face of the city’s tourism sector. They argued that ensuring workers have adequate pay and benefits is essential for maintaining a thriving economy.

However, representatives from the California Restaurant Association and the Valley Industry and Commerce Association cautioned against the proposed ordinance, citing real and harmful consequences for the local economy, including restaurant closures and layoffs. They urged the committee to pause the implementation of the tourism worker ordinance to engage with stakeholders and find a balanced solution that protects both jobs and workers.

The meeting concluded with a series of public comments from LAX workers who passionately advocated for a living wage, highlighting their struggles with rising living costs and the urgent need for financial relief. The committee is expected to deliberate on the proposed wage increase and its implications for the city’s economic recovery in the coming weeks.