The City of Los Angeles faces a projected $1 billion budget deficit for the 2025–2026 fiscal year, leading embattled Mayor Karen Bass to call for laying off 1,647 city workers in her $13.95 billion spending plan released on April 28.
Los Angeles is grappling with several issues, including declining revenues, rising liability claims, and increased payroll costs. The toll of the January fires that ravaged Los Angeles has further added to increased city costs.