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Advisory Group on the Citys Finances and Budget / Financial Crisis / Long-Term Fiscal Health

Council File 25-0314

In progress — the city established a volunteer advisory group to tackle structural budget problems and propose reforms on revenue, spending, and service delivery. Their initial report is under review by the Budget and Finance Committee, with a hearing scheduled for mid-September.

Introduced
2025-03-21
Last changed
2026-09-11
Status
open
Expires
2028-09-11
Committee
Budget and Finance Committee
Mover
MARQUEECE HARRIS-DAWSON
Second
EUNISSES HERNANDEZ
References
Related Council File: 24-0600-S114

Brief

In March 2025, Councilmembers Marqueece Harris-Dawson and Katy Yaroslavsky introduced a motion to establish an Advisory Group on the City's Finances and Budget to examine the city's long-term fiscal health and financial crisis. The Council adopted the motion 11-1-3 on April 25, 2025. The item has since been referred back to the Budget and Finance Committee, where it remains pending as of September 2026, with a scheduled committee hearing on September 15, 2026.

Full summary

Councilmembers Marqueece Harris-Dawson and Katy Yaroslavsky introduced this motion in March 2025 against the backdrop of a serious and converging set of fiscal pressures: the City Administrative Officer's Third Financial Status Report identified more than $300 million in overspending for fiscal year 2024-25, including a $95 million shortfall in the Liability Claims Account alone, and the City Controller's Revenue Forecast projected that General Fund revenues would fall $140 million short of projections, with further declines expected into FY 2025-26. The motion argues that one-year fixes have left Los Angeles in a cycle of spiraling instability, and calls for structural reform in how the city manages its budget, generates revenue, and delivers services. The motion establishes an unpaid, volunteer Advisory Group composed of members of the public with professional expertise in municipal finance, economic development, real estate, liability management, government efficiency, deliberative democracy, and civil service systems. Five lead members are to be appointed by the Budget and Finance Chair, the Council President, and the Council President Pro Tempore. The group is directed to report to the Budget and Finance Committee at least quarterly, with a mandate not to exceed 18 months. Its work program covers a broad range of topics: maximizing city-owned property and assets, novel revenue generation, public-private partnerships, liability reduction, debt utilization, Charter and code reforms, and increasing resident participation in the budget process — including through community or citizen assemblies. The group is also authorized to collaborate with philanthropic, private, and nonprofit partners and third-party consultants. The motion moved through the Budget and Finance Committee and the Rules, Elections and Intergovernmental Relations Committee in late March and early April 2025, with both panels approving it. The full Council adopted the motion on April 25, 2025, by a vote of 11-1-3. Eight neighborhood councils submitted community impact statements between April and August 2025, reflecting broad public interest in the file. Following adoption, the Advisory Group began operating and submitted a report to the Budget and Finance Committee on June 26, 2026. That document was referred back to the committee on August 26, 2026. The item has been continued several times since, and is currently scheduled for a Budget and Finance Committee hearing on September 15, 2026. The file remains active and open, with an expiration date of September 2028.

Activity (21)

  • 2026-09-11 Budget and Finance Committee scheduled item for committee meeting on September 15, 2026.
  • 2026-09-01 Budget and Finance Committee continued item to September 15, 2026 .
  • 2026-08-28 Budget and Finance Committee scheduled item for committee meeting on September 1, 2026.
  • 2026-08-26 Budget and Finance Advisory Committee document(s) referred to Budget and Finance Committee.
  • 2026-06-26 Document submitted by Budget and Finance Advisory Committee, dated June 26, 2026.
  • 2025-08-18 Community Impact Statement submitted by Sherman Oaks Neighborhood Council.
  • 2025-06-08 Community Impact Statement submitted by Greater Wilshire Neighborhood Council.
  • 2025-05-29 Community Impact Statement submitted by Pico Union Neighborhood Council.
  • 2025-05-25 Community Impact Statement submitted by Hermon Neighborhood Council.
  • 2025-05-20 Community Impact Statement submitted by Harbor Gateway South Neighborhood Council.
  • 2025-05-10 Community Impact Statement submitted by Del Rey Neighborhood Council.
  • 2025-04-29 Council action final.
  • 2025-04-29 Community Impact Statement submitted by Reseda Neighborhood Council.
  • 2025-04-25 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
  • 2025-04-22 City Clerk scheduled item for Council on April 25, 2025.
  • 2025-04-21 Community Impact Statement submitted by Palms Neighborhood Council.
  • 2025-04-11 Rules, Elections and Intergovernmental Relations Committee concurred with the Budget and Finance Committee.
  • 2025-04-08 Rules, Elections and Intergovernmental Relations Committee scheduled item for committee meeting on April 11, 2025.
  • 2025-04-01 Budget and Finance Committee approved item(s) .
  • 2025-03-28 Budget and Finance Committee scheduled item for committee meeting on April 1, 2025.
  • 2025-03-21 Motion referred to Budget and Finance Committee; Rules, Elections and Intergovernmental Relations Committee.

Documents (38)

Council votes (1)

  • 2025-04-25 Vote — 11-1-3 · Regular

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