The Los Angeles City Budget and Finance Committee on a unanimous 5-0 vote approved a motion directing the City Administrative Officer (CAO), Office of Finance and Chief Legislative Analyst (CLA) to produce a coordinated review of revenue-generation options and a four-year budget outlook.

The motion asks staff to produce an initial, 45-day list of possible revenue ideas — grouped by type (tax, fee, bond, asset maximization or other), who would pay, and the likely effect on the general fund or special funds — and to follow with two fuller reports by February: one on transient occupancy tax (TOT) options tied to upcoming international events and online booking platforms, and one on the business tax code.

Committee members said the work is urgent because the city faces a strained fiscal position following recent disasters and ongoing revenue shortfalls. Office of Finance staff told the committee the city’s general fund is driven mainly by economically sensitive taxes — property, sales, documentary transfer tax, transient occupancy tax, parking and business tax — and by about $1,000,000,000 in departmental receipts. Staff said those revenues are estimated using historical averages and that some collections arrive late in the fiscal year, limiting what can be incorporated into the next annual budget.

Office of Finance Director Diana Mangiolu and CLA representative Andrea Galvin told members the TOT review will also examine unclear code language about how online booking platforms remit tax and that any ballot measure to change taxes would need to meet election and legal timelines; staff identified June 2026 as a possible election window for some measures. The CAO said the business tax review would be a multistage effort focused on code modernization and small-business impacts and likely would be revenue-neutral in initial phases.

Committee members asked that the initial list include not only revenue increases but options that would produce net savings — for example, returning sidewalk repair responsibility to property owners when a property is sold. Members also asked staff to coordinate with other departmental reports so work is not duplicated.

The committee approved the motion as amended. The roll call vote was Councilmember Yaroslavsky — yes; Councilmember Blumenfield — yes; Councilmember Hutt — aye; Councilmember McOsker — yes; Councilmember Hernandez — yes.

An early deliverable the committee requested is an estimate of the budgetary effect of the recent Palisades fire on property tax revenues; staff said they will study that, but it is too early for a precise estimate.