Los Angeles Mayor Karen Bass proposed a plan on Monday to lay off more than 1,600 government employees in an effort to address a nearly $1 billion budget shortfall, which has been exacerbated by a struggling economy and the ongoing challenge of rebuilding a coastal neighborhood destroyed in a wildfire earlier this year.
This potential reduction in government jobs comes as a significant blow to Bass, a first-term Democrat who is seeking re-election next year. In her address to the city council, Bass acknowledged that the city’s workforce is “the city’s greatest asset” but emphasized that the cuts were necessary due to financial pressures from rising worker salaries and benefits, a slowing economy, and the costly task of rebuilding the upscale Pacific Palisades area.
Bass explained that balancing the budget was incredibly challenging and described the job cuts as a “last resort.” David Green, president of Service Employees International Union Local 721, which represents over 10,000 city workers, voiced opposition to the layoffs, stating that the union would pursue other funding sources and solutions rather than allowing city workers to bear the brunt of the cuts.
Last month, Bass and the city council requested nearly $2 billion in disaster recovery aid from Sacramento due to the city’s projected budget deficit. Bass plans to return to Sacramento this week to seek additional state funding, which could help reduce the number of layoffs.
The Palisades Fire, which destroyed over 6,800 buildings and caused at least 12 deaths, added to the city’s financial strain. Despite the proposed job reductions, the city’s fire and police departments will not face cuts.
Bass’ proposed workforce reductions are reminiscent of the financial challenges faced during the 2008 recession, when then-Mayor Antonio Villaraigosa made similar cuts, imposed pension and healthcare contributions on city workers, and clashed with the teachers’ union. During the pandemic, former Mayor Eric Garcetti furloughed around 15,000 city employees and offered early retirement packages but avoided large-scale layoffs.
Despite the city’s financial difficulties, Bass remained optimistic in her speech, noting improvements in crime rates, including a decline in homicides, and progress in moving homeless individuals into housing. However, she acknowledged that the city still has a long way to go, especially in addressing the issue of homelessness, which remains visible in many neighborhoods. Additional funding for housing will be necessary to continue making progress.
