LA County Proposes $47.9B Budget With $88.9M Cuts, $2B Fire Costs, $4B Settlement, No Layoffs

Los Angeles County has unveiled a $47.9 billion budget proposal for the upcoming fiscal year, which includes $88.9 million in cuts and the elimination of 310 vacant positions out of 117,100 budgeted positions. The proposal avoids layoffs and calls for a 3% reduction across most county departments. The county faces approximately $2 billion in fire recovery costs from recent wildfires, including the Eaton and Palisades fires, with recovery expenses covering soil testing, debris removal, and beach cleanup. The fire recovery costs include $1 billion in lost revenue, mostly from property taxes. Federal reimbursements for these costs are expected to take years. Additionally, the county is preparing to pay a $4 billion settlement to nearly 7,000 claimants in the largest child sexual abuse case settlement in U.S. history, arising from incidents in juvenile facilities and foster homes. Declining home sales have led to reduced property tax revenue, and there is a potential loss of hundreds of millions in federal funding. The county plans to use its $1 billion rainy day fund and may take out bonds to cover costs. The public works, regional planning, mental health, and sheriff's departments are exempt from the proposed cuts. The Board of Supervisors is scheduled to discuss the recommendations on Tuesday. The budget maintains funding for key priorities, including $1.1 billion for homelessness services funded by Measure A and $11.9 million for government reform under Measure G. A recent report shows that nearly a third (32.91%) of fires in Los Angeles over the last six years involved a member of the homeless community. In fiscal year 2024/2025, the city allocated about $961 million to homelessness, while the Los Angeles Fire Department's budget was about $837 million. The number of rubbish fires has surged by 475% over the past decade, with nearly half involving people experiencing homelessness, contributing to increased call volumes and response times for the fire department.