Budget committee hears $900M-plus shortfall, mayoral plan that could eliminate about 1,647 city positions

The Los Angeles Mayor’s Budget Precommittee on April 29 reviewed a mayoral budget proposal that officials said leaves the city facing a structural shortfall of roughly $900 million to $1 billion for fiscal year 2025–26 and a four‑year outlook that depends on deep cuts and program consolidations.

Committee members and city budget staff described a multistep plan that relies on $282 million from eliminating filled and vacant positions, draws on one‑time revenues and reserves, and proposes structural changes including consolidating several departments and commissions. The mayor’s team is proposing the elimination of about 1,647 positions across the city as part of those reductions.

Why it matters: The committee’s deliberations set the stage for which services will be trimmed or restored, how many city employees may be separated or transferred, and how the city prepares for near‑term risks such as a possible national recession, reduced tourism revenue and growing legal liabilities. The measures under discussion would affect public safety services, street repairs, animal services, homelessness programs and the city’s capacity to stage large events including the 2028 Olympics.

Budget picture and approach Budget office presenters told the committee the proposed FY 2025–26 budget assumes weak revenue growth (roughly 0.36 percent in some measures) while cost pressures — higher personnel costs, increased legal claim liabilities and fallout from wildfire impacts and federal trade policy — are expected…