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Mayor Bass unveils $14.8B proposed budget for fiscal year 2026-27
Los Angeles homelessness agency cuts nearly 300 jobs
By Jose Herrera, City News Service
joet@beaconmedianews.com
os Angeles Mayor Karen Bass on Monday unveiled a proposed $14.8 billion spending plan for fiscal year 2026-27, maintaining funding for what she has set as priorities such as addressing homelessness, accelerating affordable housing projects and supporting police hiring. Officials described the proposal as a "balanced budget," consisting of $8.59 billion for the general fund and $6.26 billion in special funds, which are allocated for specific uses. City officials emphasized there are no planned layoffs or furlough days, however, the mayor has recommended the elimination of 149 vacant positions. "We've worked hard to change LA's direction on homelessness, public safety and basic city services, and this budget builds on that work so we can keep making progress," Bass said. The proposed spending
plan hinges on projected revenue increases from several tax categories that are expected to offset some of the city's cost increases. The proposal sets a cumulative reserve fund of about 8.41% — or about $490 million in the reserve fund, $194 million in the budget stabilization fund and some $38 million for mid-year adjustments. Those dollars are allocated for emergency purposes, but in past years city officials used the money to address the city's deficits and some initiatives. Bass' proposed budget is expected to provide $700 million to address homelessness, of which about $104 million will continue to support the mayor's Inside Safe program. Officials said they will spend more to address recreational vehicle encampments on the streets, and bolster initiatives to conduct oversight of program services.
On public safety, the proposal is expected to provide the Los Angeles Police Department with approximately $2.111 billion. Funding will prioritize the hiring of 510 new officers, though officials said they expect attrition of 510 officers as well. Bass said the city aims to ensure LAPD's force remains at 8,555 in the coming fiscal year. LAPD would also have funding to conduct useof-force, de-escalation and mental health intervention training. The Los Angeles Police Protective League in a statement said it supported Bass' budget, and urged the City Council to support "our rank-and-file police officers and ensure that enough officers are available to provide backup and keep residents safe while patrolling our neighborhoods." LAPD is expected to See Budget Page 32
By Joe Taglieri
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LA Mayor Karen Bass delivers the 2026 State of the City address following the release of her proposed budget for the upcoming fiscal year. | Photo courtesy of the mayor's office
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conduct strategic deployment of officers and other resources to patrol neighborhoods hit by burglaries, and commercial corridors targeted by retail theft, and crack down on street takeovers, as well as continue efforts to address copper wire theft. The mayor noted her proposal maintains funding for the Los Angeles Fire Department, and proposes about $42 million for the purchase of four new fire trucks and other vehicles. Bass' proposed budget sets funding for maintaining 500 crossing guards around schools, as well as sustaining unarmed response programs such as CIRCLE, UMCR and GRYD services. Lastly, the spending plan increases funding for street and sidewalk repair, street sweeping, bulky item pickup and teams to address illegal dumping.
he Los Angeles Homeless Services Authority on Monday announced plans to lay off 284 employees, citing looming reductions in funding from LA County. LAHSA formally notified labor union SEIU Local 721, the Los Angeles County Board of Supervisors, LA Mayor Karen Bass and state officials of the intent to issue layoff notices on April 30 to 216 union-represented staffers and 68 nonunion employees. Officials said the final day of employment is projected to be June 30, coinciding with the end of the current fiscal year. "I want to profoundly thank our staff for their unwavering dedication and hard work serving people experiencing homelessness across Los Angeles County," LAHSA interim CEO Gita O’Neill said in a statement. "Our staff has been the driving force behind the historic reductions in street homelessness we've seen over the past two years. Though our agency’s structure is changing, the monumental impact of their work — housing nearly 80,000 people over three years — speaks for itself." According to LAHSA, the layoffs resulted primarily from impending funding cuts following county supervisors’ decision to establish the new Department of Homeless Services and Housing. The staff reductions will eliminate 414 positions,
130 of which are currently vacant, the agency reported. The layoffs will reduce the total staff from 602 to 318 employees, with 55 additional vacant positions if there are no resignations between now and June 30, LAHSA spokesman Ahmad Chapman said. The final details of the city of Los Angeles budget, expected to be finalized by early June, may result in some employees who received layoff notices to continue working for the agency after June 30, according to LAHSA. On Monday, Bass proposed a $14.89 billion budget for fiscal year 2026-27 that allocates about $788 million for homelessness spending, a 17.3% decrease or $165.2 million less compared with the current budget's $953.3 million. Bass has proposed funding for LAHSA to increase from $50.65 million to $52.82 million, or by approximately $2.2 million, documents show. Money from the city to LAHSA is expected to fund the annual point-in-time count of individuals experiencing unsheltered homelessness, continuum of care administration services, shelter and housing and efforts to reduce street homelessness. Along with the announcement of job cuts, LAHSA officials touted the agency's accomplishments: • Two consecutive years of overall reductions in homelessness;
See Homelessness agency Page 31