Long Beach budget hearing spotlights public health cuts, Tidelands revenue shortfall and development workload

Long Beach — City officials told the Long Beach City Council on Aug. 19 that the city faces growing fiscal pressure from declining Tidelands (coastal) oil revenues, shrinking federal and state public-health grants and continuing operational costs, even as Community Development and permit services try to keep up with record housing activity.

At a continuing budget hearing that grouped presentations from Community Development, Health and Human Services and a Tidelands overview, department leaders outlined short-term budget moves and longer-term risks — and asked the council for direction on choices that could protect frontline services.

Community Development Director Christopher Koontz said the department has expanded staff and technology to process a surge of small residential projects and a record number of housing entitlements. “We issue more than a thousand permits each month, and we’re spending $40,000,000 to have the best permit software in the industry,” Koontz said, describing a new LB Build permitting system and additions such as a dedicated counter for accessory dwelling units and extra inspectors to speed turnaround.

Koontz warned the council that the department’s fee-based Development Services Fund covers most operations and that workload has shifted from large projects toward many smaller projects such as ADUs, requiring different staffing and fee adjustments. He said the department proposes 259 budgeted positions (up from a 255 base) and limited fee increases to sustain customer service goals.

Health and Human Services Director Lisonbee King described deep cuts to public-health grants and the department’s plan to preserve core programs. She said the city has seen about $3.9 million in grant cancellations, reductions or terminations since January 2025, impacting 16.2 full-time equivalents and eliminating 10 positions so far. King gave specific examples: the SNAP‑education program funding will end…