As elected officials consider spending reductions and layoffs to address a nearly $1 billion shortfall in Los Angeles' budget for the 2025-26 fiscal year, Mayor Karen Bass' office said she will take a pay cut and hold off on scheduled raises for her staff.
"The mayor is taking a pay cut and Mayor's Office staff are not taking their regularly scheduled cost of living adjustments office-wide in June 2025 (4%), December 2025 (2%), and June 2026 (4%),'' Zach Seidl, a spokesman for Bass, said in a statement.
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WATCH HEREHer office did not detail how much of a pay cut Bass would take, nor when it would go into effect.
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SIGN UP Bass said municipal employee layoffs will be necessary to address the extraordinary budget gap. Her office later released the mayor's spending proposal, which includes 1,647 layoffs, and said the mayor will work to reduce that number.
"My proposed budget unfortunately includes layoffs, which is a decision of absolute last resort," Bass said. "So let me assure you, our hard-working public servants, that I will never stop fighting for you."
Bass' office said no sworn officers or firefighters will be impacted by layoffs. The proposal includes protection for homeless funding, no changes to library, recreation and park facility hours and support for capital infrastructure.
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The Fiscal Year 2025-2026 proposed budget was released Monday after the mayor addressed a broad range of challenges facing Los Angeles, including wildfire recovery, at her State of the City speech inside Los Angeles City Hall. Bass said her budget proposal will "deliver fundamental change to the way the city operates."
Bass has proposed cutting more than 2,700 city positions with 1,647 layoffs and the elimination of 1,053 vacant positions. Those savings, among other new revenue sources, are expected to lower the city's nearly $1 billion deficit to $800 million, according to the mayor.
The figures could change as the budget process advances toward final city council consideration in June.
The proposal also calls for the consolidation of several city departments.
Despite the personnel cuts, the proposed budget would be an 8.2% increase over the adopted spending plan for the 2024-25 fiscal year.
The deficit is a result of a 35% reduction in tax revenue, overspending, an increase in liability payouts, labor costs and fire recovery efforts, the city said.
As a result of labor contracts, city employees will see an increase in salaries, costing an estimated $250 million for the 2025-26 fiscal year.
"My proposed budget is balanced but we are facing dire economic times," Bass said in a statement. "It's more important now than ever that we work closely with our state and labor partners, especially as we rebuild in the Palisades."
Bass traveled to Sacramento Wednesday to lobby state officials for a $2 billion relief package. Gov. Gavin Newsom will announce revisions to the state budget mid-May, which at that time city officials may have a better idea of where they stand financially.
Under the City Charter, Los Angeles must finalize its budget before the start of the next fiscal year, July 1.
