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LA Mayor Requests $2 Billion from State to Address Budget Shortfall and Wildfire Expenses


The city is seeking over $600 million to enhance streets and compensate for revenue losses caused by the Palisades Fire.

On March 24, Los Angeles Mayor Karen Bass met with state lawmakers in Sacramento to request nearly $2 billion to address a $1 billion budget deficit and expenses associated with the damaging Palisades Fire.

Bass led a group comprising four City Council members advocating for funds to be included in Governor Gavin Newsom’s forthcoming budget, which is currently under legislative scrutiny.

“Los Angeles is confronting a budget crisis while recovering from devastating and unparalleled wildfires, and it’s crucial that we directly seek assistance from state leaders,” Bass stated in a press release on Monday.

The mayor informed City News Service that the meetings were fruitful. She engaged with Newsom, Assembly Speaker Robert Rivas (D-Hollister), and Assemblywoman Tina McKinnor (D-Inglewood), who leads the Los Angeles County legislative delegation.

“We did not expect to leave with a check, but we certainly came away with encouragement and support,” she remarked.

Los Angeles is facing a projected $1 billion budget deficit this year due to declining tax revenues and increasing costs from liability payments, wildfires, and other personnel expenditures, according to Bass in a press release issued on Monday.
The city and its residents are recovering from the Palisades Fire in January, which resulted in the deaths of at least 12 individuals and the destruction of nearly 7,000 homes and buildings.
After the discussions in Sacramento, the delegation sent a letter to the Assembly Budget Committee asking for $1.9 billion to assist the city.

Included in the major requests are $638 million allocated for improvements to streets, sidewalks, and lighting, as well as to cover an “extraordinary spike” of $200 million in liability payouts. This would also address the estimated $38 million loss in revenue due to the Palisades Fire and rebuild the city’s reserves by $150 million, as outlined in the letter.

Crews clear mud and debris flows caused by heavy rains in the Palisades Fire burn area along Pacific Coast Highway near Los Angeles on Feb. 14, 2024. (John Fredricks/The Epoch Times)

Crews clear mud and debris flows caused by heavy rains in the Palisades Fire burn area along Pacific Coast Highway near Los Angeles on Feb. 14, 2024. John Fredricks/The Epoch Times

Furthermore, the city is requesting $750 million to enhance the power grid in Pacific Palisades. Some of these funds will promote the use of heat pumps, electric cooktops, and battery storage as part of the city’s Green New Deal initiative.

Additionally, a request for $301 million was made to serve as a loan to address recovery expenses until reimbursement is received from the Federal Emergency Management Agency, FEMA.

The city also sought nearly $73 million for several initiatives to assist workers and residents through the operation of another one-stop rebuilding center, which would waive permitting fees, employ locals for cleanup, and facilitate recovery. This funding would cover an interim library, recreational activities, and emergency housing vouchers.

Council President Marqueece Harris-Dawson and Council members Bob Blumenfield, Adrin Nazarian, and Katy Yaroslavsky, who chairs the budget committee, accompanied Bass on the visit.

Harris-Dawson expressed that the city is in distress.

“Our city faces urgent financial difficulties, and we are advocating for essential funding to maintain services, enhance wildfire resilience, and ensure a sustainable future for Angelenos,” Harris-Dawson stated.

Yaroslavsky emphasized that the purpose of the trip was to “lay a foundation” for the city.

“Los Angeles is confronting a nearly billion-dollar budget shortfall due to recent wildfires, increasing liability pressures, falling revenues, and years of temporary budgeting,” she mentioned. “However, this trip to Sacramento was not just about a short-term solution; it was about establishing a basis for a stronger, more resilient city.”

Bass and Yaroslavsky also remarked that this funding would assist the city in preparing for the 2028 Summer Olympics and Paralympic Games, during which Los Angeles will host guests from across the globe.

Bass noted that she has “homework” to complete to provide the Legislature with more detailed information.

The delegation also conferred with state Senate President Pro Tempore Mike McGuire (D-Healdsburg), Senate Budget Committee Chair Scott Wiener (D-San Francisco), and Sen. Maria Elena Durazo (D-Los Angeles), who serves as vice chair of the Los Angeles County legislative delegation.

City News Service contributed to this report.



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