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Budget Proposal Fiscal Year 2026-27

Council File 26-0600

Introduced
2026-03-27
Last changed
2026-05-19
Status
open
Expires
2028-05-19
Mover
KATY YAROSLAVSKY
Second
MARQUEECE HARRIS-DAWSON

Brief

Councilmember Katy Yaroslavsky moved the city's FY 2026-27 budget proposal on March 27, 2026, seconded by Marqueece Harris-Dawson. The City Council adopted the budget 15-0 on April 14, subject to reconsideration under Council Rule 51. The Budget and Finance Committee then conducted an extended review in late April and early May, approving the budget as amended on May 15. The file is now scheduled for full Council action on May 22, 2026. Multiple neighborhood councils have submitted community impact statements throughout the process.

Full summary

The Mayor's proposed FY 2026-27 budget totals $14.85 billion, a 5.3 percent increase over the prior year, with General Fund revenues projected at $8.59 billion. The budget avoids layoffs, restores some services cut in 2025-26, and increases investments in public safety and infrastructure — particularly in preparation for the 2028 Olympic and Paralympic Games — while continuing funding for homelessness services. The Reserve Fund is projected to begin the year at $489.4 million, or 5.7 percent of General Fund revenue, exceeding the city's five percent policy goal. However, the City Administrative Officer warned that the budget carries a structural deficit, underfunds several obligatory costs including Police and Fire pension payments and civilian salaries, overestimates County reimbursements for homelessness spending by $38 million, and does not project structural balance until 2029-30. Over 39 hours of public hearings spanning eight days beginning April 24, the Budget and Finance Committee heard from city department heads across every major area of city government. Key points of debate included: the Police Department's request for 300 additional patrol vehicles for the 2028 Games (ultimately deferred for further study); severe Fire Department staffing shortages with 121 vacant positions and 270 staff on injury leave; LAHSA's financial instability following the County's withdrawal of funding; the Clean Corridors Program's unclear scope and overlap with existing sanitation efforts; and risks posed by two November 2026 ballot measures that could eliminate over $1 billion in annual General Fund revenue by repealing the Gross Receipts Business Tax and Documentary Transfer Tax. On May 15, the Chief Legislative Analyst presented recommended amendments that the Budget and Finance Committee unanimously approved. The CLA's changes include: a citywide hiring delay shifting all new positions to January 1, 2027, saving $8.8 million; a delay on new contracts until January 1, 2027; rebalancing the LAPD sworn hiring plan while preserving the goal of 510 new officers; expanding the Unarmed Model of Crisis Response into six additional police areas; boosting the Reserve Fund to $515 million (6 percent of revenues) and cumulative reserves to 8.9 percent; restoring Council District Community Services funding; increasing homeless services funding and restoring the Safe Parking Program; adding 18 positions in the City Attorney's office to reduce litigation caseloads; and transferring Clean Corridors Program funding to the Unappropriated Balance pending a report on program design and coordination. The committee also added a contingency framework directing the CAO to immediately begin a budget reduction process if the November 2026 ballot measure repealing the Gross Receipts Tax passes, including potential layoffs and cancellation of contracts to achieve $800-$900 million in savings for 2027-28. The full Council is scheduled to take up the amended budget on May 22, 2026.

Activity (34)

  • 2026-05-19 City Clerk scheduled item for Council on May 22, 2026.
  • 2026-05-19 Community Impact Statement submitted by Glassell Park Neighborhood Council.
  • 2026-05-18 Community Impact Statement submitted by Greater Toluca Lake Neighborhood Council.
  • 2026-05-17 Community Impact Statement submitted by West LA - Sawtelle Neighborhood Council.
  • 2026-05-15 City Clerk scheduled item for Council on May 20, 2026.
  • 2026-05-15 Budget and Finance Committee approved as amended .
  • 2026-05-15 Chief Legislative Analyst document(s) referred to Budget and Finance Committee.
  • 2026-05-15 Document submitted by Chief Legislative Analyst, dated May 15, 2026.
  • 2026-05-15 Community Impact Statement submitted by Del Rey Neighborhood Council.
  • 2026-05-14 Community Impact Statement submitted by NoHo Neighborhood Council.
  • 2026-05-13 Community Impact Statement submitted by Eagle Rock Neighborhood Council.
  • 2026-05-13 Community Impact Statement submitted by Sherman Oaks Neighborhood Council.
  • 2026-05-12 Community Impact Statement submitted by Community and Neighbors for 9th District Unity Neighborhood Council.
  • 2026-05-12 Community Impact Statement submitted by Historic Highland Park Neighborhood Council.
  • 2026-05-07 Budget and Finance Committee recessed and continued item to/for May 15, 2026.
  • 2026-05-04 Budget and Finance Committee recessed and continued item to/for May 7, 2026.
  • 2026-05-04 Community Impact Statement submitted by Tarzana Neighborhood Council.
  • 2026-04-30 Budget and Finance Committee recessed and continued item to/for May 4, 2026.
  • 2026-04-29 Budget and Finance Committee recessed and continued item to/for April 30, 2026
  • 2026-04-28 Budget and Finance Committee recessed and continued item to/for April 29, 2026
  • 2026-04-27 Budget and Finance Committee recessed and continued item to/for April 28, 2026.
  • 2026-04-27 Chief Legislative Analyst document(s) referred to Budget and Finance Committee.
  • 2026-04-27 Document submitted by Chief Legislative Analyst, dated April 27, 2026.
  • 2026-04-24 Budget and Finance Committee recessed and continued item to/for April 27, 2026.
  • 2026-04-21 Community Impact Statement submitted by Pacoima Neighborhood Council.
  • 2026-04-20 Mayor document(s) referred to Budget and Finance Committee.
  • 2026-04-20 Document submitted by Mayor, dated April 20, 2026.
  • 2026-04-17 Budget and Finance Committee scheduled item for committee meeting from April 24, 2026, and to convene and recess as necessary, until May 15, 2026.
  • 2026-04-16 Council action final.
  • 2026-04-16 Community Impact Statement submitted by Harbor City Neighborhood Council.
  • 2026-04-14 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
  • 2026-04-10 City Clerk scheduled item for committee meeting on April 14, 2026.
  • 2026-04-02 Community Impact Statement submitted by Harbor Gateway North Neighborhood Council.
  • 2026-03-27 Motion referred to Council.

Documents (160)

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