URGENT UPDATE: The Los Angeles City Council has just launched a new Budget and Finance Advisory Committee in response to ongoing financial challenges, including a staggering $1 billion budget deficit. This critical initiative, announced after a tumultuous budget cycle, aims to tackle the city’s deep-rooted fiscal issues over the next two years.
During its inaugural meeting on November 24, 2025, the committee, chaired by former city controller Ron Galperin, gathered to strategize long-term solutions to enhance Los Angeles’ financial stability. This comes as the city continues to grapple with rising costs, weak revenue growth, and a reserve fund that barely meets policy requirements. Councilmember Katy Yaroslavsky, who proposed the committee, emphasized the need to break free from ineffective year-to-year budget fixes, stating, “We cannot keep repeating the same budget process every year and expect different results.”
The committee, which also includes Jessica Lall, Gilda Haas, Derric Johnson, and Joseph Lumarda, is expected to focus on sustainable budgeting and improving revenue planning. They will meet roughly once a month, with the next session scheduled for January 12, 2025.
“This is an important opportunity to strengthen the city’s financial foundation,” Galperin stated, highlighting the pressing need for comprehensive reforms. The panel is set to work in six-month cycles, with the goal of presenting actionable recommendations to the Budget and Finance Committee.
Despite successfully closing the $1 billion gap earlier this summer by cutting proposed layoffs and negotiating labor agreements, city officials warn that structural pressures remain. City Administrative Officer Matt Szabo noted that about 80% of the city’s spending is personnel-related and emphasized the volatility of revenue sources such as business and sales taxes.
The newly formed committee will also explore ways to enhance transparency and public engagement, a sentiment echoed by neighborhood advocates. Budget Advocate Lionel Mares called for greater involvement from residents, stressing the importance of addressing soaring liability costs that impact city services. “I hope that the Budget and Finance Advisory Committee will hold public meetings during the evenings and weekends to make it accessible to the public,” he urged.
As the committee sets out on its mission, the urgency to find sustainable financial solutions has never been greater. With significant challenges ahead, including a projected $91 million gap for the next fiscal year, the city is at a critical juncture.
Stay tuned as developments unfold. The success of this advisory group could reshape the financial future of Los Angeles, impacting residents and city services alike.
