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LA County supervisors approve $50.3B budget for 2026-27
Kwan explains lone vote against Arcadia budget
By Jose Herrera, City News Service
joet@civicnewsgroup.com
T
he Los Angeles County Board of Supervisors on Monday unanimously approved a $50.3 billion spending plan for fiscal year 2026-27, representing an increase of $1.5 billion compared to the current budget. The Board of Supervisors finalized the spending plan Monday during a special meeting, authorizing changes to what was initially a $47.9 billion budget proposal in April. The new fiscal year will begin July 1. County officials said the increase was primarily the result of shifting $1.3 billion in special funds and other restricted funding, and nearly $900 million from the state for behavioral health services. Estimated tax revenue in the proposed budget remained unchanged, according to county CEO Joseph Nicchitta. He noted there is no new local money in the final changes. The spending plan accounts for a total of 115,683 budgeted positions compared to what was initially 115,885 positions, a net decrease of 202 positions. Nicchitta said those positions do not represent layoffs but rather
By Joe Taglieri
A
The Board of Supervisors records a 5-0 vote for the upcoming fiscal year's budget. | Photo courtesy of Los Angeles County
a change in departmental operational needs. "We are contending with federal funding cuts and little changes to food and health care benefits under HR 1, a state budget deficit, increasing cost of services, and large scale liabilities, all of which are putting intense pressure on our budget, and forcing us to operate in a climate of uncertainty with several factors that are out of our control," Nicchitta said. "Our goal under these conditions is to prioritize critical safety net services over less immediate needs,
and preserve rather than grow programs," Nicchitta added. County officials explained the spending increase consists of the nearly $900 million in Behavioral Health Services Act-related dollars, as well as $167.6 million for mental health programs, and $101.6 million in one-time funding for homeless services and housing, among other sources. Another $15 million in existing funding that was budgeted to pay for retirement benefits will be
repurposed for other uses. There are no changes to retirement benefits nor does the funding represent new locally generated revenue, Nicchitta said. The $15 million is expected to be allocated in the following ways: -- $7 million to operate and maintain county parks: Esperanza Hills, Charles White, Irvine Magic Johnson, and Wishing Street Park; -- $5 million to support the new Ethics Commission and Office of Ethics Compliance;
See Budget Page 27
rcadia Councilwoman Sharon Kwan dissented in the 4-1 vote to approve the upcoming fiscal year's budget, citing concerns over the city's "longterm fiscal sustainability" amid national and regional economic uncertainties and city spending that is significantly outpacing revenue. City Manager Dominic Lazzaretto proposed a fiscal year 2026-27 General Fund Operating Budget with revenues of $96.6 million and expenditures of $100.1 million that include new programs requiring one-time funding transferred from dedicated savings accounts, according to his report to the council prior to the vote June 16. The General Fund is expected to end the fiscal year with a net balance of $276,000, with a "projected Fund Balance of the General Fund Operating Budget" of $21.7 million." In response to a question from Kwan, Lazzaretto pointed to a spreadsheet in his presentation that indicated when all savings accounts transfer in, actual revenue will total close to $105 million. "So to me, that's a surplus," he said.
His report, which Administrative Services Director Henry Chen co-authored, noted economic worries that local governments must contend with. "Recent shifts in federal and state economic policy, persistent inflationary pressures, evolving trade and tariff conditions, and continued volatility in financial markets have created heightened uncertainty for both the national and regional economy, reinforcing the importance of prudent fiscal planning for the upcoming fiscal year," according to the report. "Due to Arcadia’s longstanding commitment to fiscal discipline and conservative budgeting practices, the City remains in a strong financial position and is well prepared to navigate potential economic challenges. While the City’s fiscal outlook remains stable, Arcadia will continue to maintain a cautious approach in implementing the FY 2026–27 Budget." The spending plan maintains essential service levels while avoiding structural cost increases where possible, according to the report.
See Arcadia budget Page 02
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