Saddled with about $2 billion in hearth restoration prices and the most important intercourse abuse case settlement in U.S. historical past, the Los Angeles County authorities is going through about $89 million in finances cuts.
To shut the finances hole, the county should go away tons of of vacant positions unfilled, however no layoffs are anticipated, mentioned Fesia Davenport, the county’s chief govt, at a information briefing Monday.
The fireplace restoration estimate contains $1 billion in misplaced income, principally from property taxes, and $1 billion to cowl soil testing, particles removing and seashore cleanup and different prices, Davenport mentioned.
The county might be reimbursed by the federal authorities for a few of these prices, however should entrance the cash. Davenport mentioned the reimbursements for the January fires, which devastated Altadena, Pacific Palisades and surrounding areas, might take years.
L.A. County introduced this month that it deliberate to to settle almost 7,000 claims of kid sexual abuse that occurred in juvenile amenities and foster houses, most from the Nineteen Eighties by the 2000s. If accepted by the Board of Supervisors later this month, will probably be the most important intercourse abuse claims settlement in U.S. historical past.
“We knew that the price of the settlement could be unprecedented, and that it will have a devastating impression on our finances,” Davenport mentioned on the briefing, the place she unveiled the county’s roughly $48-billion advisable finances for the upcoming fiscal yr.
The intercourse abuse claims arose from Meeting Invoice 218, a 2020 state legislation that gave victims of childhood sexual abuse a brand new window to sue, though the statue of limitations had handed. 1000’s of women and men got here ahead saying they’d been sexually abused as youngsters whereas in county custody.
Davenport mentioned the county expects to pay tons of of thousands and thousands of {dollars} yearly till 2030, adopted by smaller funds by 2051. Along with taking out bonds, she mentioned, the county might want to faucet into its wet day fund, which has about $1 billion in it.
“I can’t keep in mind the final time we tapped right into a wet day fund,” she mentioned.
Davenport added that house gross sales in L.A. County have declined by 41% since 2021, placing extra strain on the county finances, which depends closely on property taxes.
Within the metropolis of Los Angeles, the highest finances official are “almost inevitable,” with a finances shortfall of almost $1 billion due partially to ballooning authorized payouts, weaker than anticipated tax income and pay raises for metropolis staff.
Beneath Davenport’s advisable spending plan, most county departments would make a 3% finances minimize, and 310 vacant positions, out of about 117,000 budgeted positions, could be eradicated countywide. Davenport declined to say whether or not layoffs have been anticipated in future years.
“Once you begin speaking about layoffs prematurely, it makes folks very nervous,” she mentioned. “You begin a rumor mill.”
The general public works, regional planning and psychological well being departments, in addition to the Sheriff’s Division, could be exempt from the cuts, in keeping with a county spokesperson.
The Trump administration has additional sophisticated the monetary image for L.A. County, which receives no less than 13% of its finances from the federal authorities. The county Division of Public Well being was lately notified that it will lose about $45 million in federal grants associated to COVID-19, a call that Davenport mentioned has been blocked by a brief restraining order, for now.
“The potential for federal funding cuts could be very actual and will destabilize the county’s finances,” she mentioned.
Davenport mentioned the advisable finances contains $1.1 billion in spending for homeless providers by Measure A, a half-cent gross sales tax that voters accepted in November, and $11.9 million for county authorities reform accepted by voters final yr by Measure G.
The Board of Supervisors will talk about the suggestions Tuesday, with the ultimate finances to be adopted in September.
