UPDATE: The Los Angeles City Council has just launched a critical new initiative to tackle deep-rooted financial issues, forming the Budget and Finance Advisory Committee following a staggering $1 billion budget deficit. This new panel held its first meeting on November 24, 2025, marking the start of a two-year commitment to reform the city’s financial strategies amidst ongoing fiscal challenges.
The committee, spearheaded by Councilmember Katy Yaroslavsky, aims to move beyond temporary fixes and incorporate external expertise into long-term budget planning. “We cannot keep repeating the same budget process every year and expect different results,” Yaroslavsky stated, emphasizing the urgency of establishing a sustainable financial framework.
At the inaugural meeting, members elected Ron Galperin, former City Controller, as chair, and Jessica Lall, managing director at CBRE, as vice chair. The committee also includes key figures like Gilda Haas, Derric Johnson, and Joseph Lumarda, all tasked with addressing the city’s structural budget issues.
Los Angeles recently navigated a budget crisis, successfully closing a $1 billion gap that threatened employee jobs. This was achieved through a revised spending plan that significantly reduced proposed layoffs and scaled back public safety funding. Yet, city officials warn that the financial landscape remains precarious, with ongoing pressures from volatile revenue streams and rising costs.
“This is an important opportunity to strengthen the city’s financial foundation,” Galperin remarked, outlining the committee’s mission to develop long-term solutions for sustainable budgeting and revenue planning.
City Administrative Officer Matt Szabo highlighted that approximately 80% of the city’s budget is dedicated to personnel costs, warning that the reserve fund is perilously close to the city’s 5% policy minimum. “We need to be closer to 10% to effectively weather economic downturns,” he stressed during the meeting.
Looking ahead, the committee plans to meet approximately once a month, with their next session scheduled for January 12, 2025. They will focus on crucial issues such as asset management, economic development, and potential charter reforms, all aimed at enhancing transparency and community engagement.
Community advocates, including Budget Advocate Lionel Mares, have welcomed the committee’s formation but urged members to maintain strong ties with residents. Mares expressed hope that the committee would prioritize soaring liability costs and ensure that city jobs remain intact, calling for public meetings to enhance accessibility.
The Budget and Finance Advisory Committee will deliver recommendations to the City Council, which must approve any major changes. As the city grapples with ongoing fiscal challenges, the panel’s work will be closely watched by residents who demand accountability and sustainable financial practices.
As developments unfold, Los Angeles residents are left to ponder the future of their city’s finances and the effectiveness of this newly formed committee in navigating the complexities of budget management.
