LA’s Billion Dollar Budget Mess
Details
LA WATCHDOG--The City of Los Angeles is facing a “budget gap” of more than $1 billion for the next fiscal year that commences on July 1, 2021.
According to the CAO’s Four Year Budget Outlook, the budget gap for next year is expected to be $228 million as a result of the budget busting labor agreements that were approved by the Mayor and City Council in the fall of 2019.
Contributions to the City’s two pension plans are expected to increase by $127 million because of changes in economic and demographic assumptions. This increases the deficit to $355 million.