LOS ANGELES—A top financial adviser to the City of Los Angeles on March 19 shared a grim outlook for fiscal year 2025–26, warning that elected officials need to address a projected $1 billion gap that will require tough financial decisions and could lead to thousands of layoffs.
Matt Szabo, city administrative officer, said Mayor Karen Bass’s proposed budget, which will be released on April 21, will close that gap, but it will require difficult “cost-cutting decisions.” He warned that the severity of revenue declines and rising costs have created a budget gap that makes layoffs “nearly inevitable.”
