UPDATE: The Los Angeles City Council has just launched a critical new Budget and Finance Advisory Committee, marking a pivotal step in addressing the city’s ongoing fiscal challenges. This initiative comes in the wake of a recent $1 billion budget deficit narrowly avoided through layoffs and budget cuts, signaling a dire need for sustainable financial solutions.
During its inaugural meeting on November 24, 2025, the five-member panel, chaired by former City Controller Ron Galperin, began its urgent two-year mission to tackle the city’s deeper structural financial issues. Councilmember Katy Yaroslavsky, who proposed the committee in March, emphasized the necessity of moving beyond “year-to-year fixes” to implement long-term planning that meets the needs of a growing metropolis.
“We cannot keep repeating the same budget process every year and expect different results,” Yaroslavsky stated. “Our revenue model has not kept pace with a modern city’s needs.”
The committee includes influential figures such as Jessica Lall, managing director at CBRE, and Gilda Haas, co-founder of L.A. Co-op Lab, alongside representatives from United Way and Capital Group. Their combined expertise aims to forge a path toward fiscal solvency through sustainable budgeting and improved revenue planning.
Mayor Karen Bass recently averted proposed layoffs following a tense budget cycle, but officials warn that the city’s financial landscape remains unstable. With about 80% of the city’s $14 billion spending plan allocated to personnel costs and a reserve fund dangerously close to the minimum policy threshold, the urgency for reform is palpable.
City Administrative Officer Matt Szabo presented a stark fiscal outlook during the meeting, noting that the city might face a $91 million gap next fiscal year unless immediate and effective measures are sustained. He expressed that a recent forecast indicates a potential return to structural balance only under consistent cost-cutting measures and without economic downturns.
As the committee embarks on its crucial work, it is expected to focus on pressing issues ranging from real estate management to charter reforms aimed at enhancing transparency and public engagement.
The committee’s meetings will occur roughly once a month, with the next session scheduled for January 12, 2025. Neighborhood Council Budget Advocates have welcomed the committee’s formation but are urging members to prioritize community involvement and transparency in their proceedings.
“We hope the committee will keep the public informed and engaged,” Budget Advocate Lionel Mares remarked, stressing the importance of addressing soaring liability costs that affect city services.
As Los Angeles grapples with its financial future, the establishment of this advisory committee marks a critical juncture in its efforts to restore fiscal health and stability. With the stakes higher than ever, all eyes will be on the committee as it sets out to define a sustainable financial strategy for the city.
Stay tuned for further updates as this vital story develops.
