UPDATE: The Los Angeles City Council has just launched a new Budget and Finance Advisory Committee to tackle the city’s urgent financial crisis. This move follows the recent closure of a staggering $1 billion budget deficit, highlighting the city’s ongoing struggle with chronic financial issues.
In its inaugural meeting on November 24, 2025, the five-member committee, led by Councilmember Katy Yaroslavsky, aims to address deeper structural problems in the city’s finances over the next two years. Yaroslavsky emphasized the need for a shift away from “year-to-year fixes” and the importance of bringing in outside expertise to achieve sustainable budgeting.
“We cannot keep repeating the same budget process every year and expect different results,” Yaroslavsky stated, underscoring the urgency of the situation. With rising costs and stagnant revenue growth, she warned that the city’s revenue model is failing to meet the demands of a modern metropolis.
Former Los Angeles City Controller Ron Galperin has been elected as the committee chair, with Jessica Lall as vice chair. The committee also includes prominent figures from various sectors, such as Gilda Haas from L.A. Co-op Lab and Derric Johnson from United Way of Greater Los Angeles. Galperin expressed optimism, stating, “This is an important opportunity to strengthen the city’s financial foundation.”
Despite recent efforts to close the budget gap, including a revised spending plan that cut proposed layoffs by more than half, the city still faces ongoing challenges. City Administrative Officer Matt Szabo reported that about 80% of the city’s spending is personnel-related, and that the reserve fund is dangerously close to the 5% minimum required by city policy.
The newly formed committee plans to meet roughly once a month, with its next session scheduled for January 12, 2026. During this time, members will explore critical issues, including better management of the city’s real estate and liabilities, as well as potential charter reforms.
Yaroslavsky has called for concrete policy steps to emerge from the committee’s work. She emphasized the need for actionable items rather than broad concepts, urging members to prioritize transparency and public engagement.
Budget Advocate Lionel Mares welcomed the committee’s formation but stressed the importance of community involvement. He called for evening and weekend public meetings to ensure accessibility. “We need to focus on soaring liability costs impacting the general fund,” he said, echoing the sentiments of many residents who are concerned about the future of city services and jobs.
As the committee embarks on this critical journey, it will report its findings to the Budget and Finance Committee. Any significant changes proposed will require the approval of the full City Council, making this an essential moment for Los Angeles.
Stay tuned for further updates on this developing story as the city grapples with ongoing financial pressures and seeks long-term solutions to ensure fiscal stability.
