Los Angeles County adopts $48.8 billion FY2025–26 budget, citing AB 218 settlements and federal funding risks

Los Angeles County supervisors on Monday adopted a $48.8 billion final budget for fiscal year 2025–26, voting 5–0 to approve midyear adjustments, spending reallocations and delegated authorities aimed at paying an unprecedented $4 billion settlement and managing risks from recent wildfires and possible federal funding cuts.

The budget, presented by County Chief Executive Officer Fesia Davenport, does not create new ongoing local discretionary funding and relies in part on restricted and one‑time resources, department curtailments and a package of savings that the CEO said would yield $128.5 million in near‑term savings. Davenport told the board the county must adopt a balanced budget before July 1 and that the adopted changes are intended to preserve critical services while protecting the county’s credit ratings.

Why it matters: the County faces simultaneous, large fiscal pressures — an AB 218 settlement that the CEO described as “unprecedented,” recovery costs from January wildfires, rising labor costs tied to recent negotiations, slowing property tax growth and uncertainty about state and federal funding. The board’s decisions set the county’s spending priorities for the coming year and authorize the financing approach to cover long‑term settlement obligations.

Most important facts first: the…