L.A. County faces $2 billion in fire recovery costs, straining budget
Saddled with about $2 billion in fire recovery costs and the largest sex abuse case settlement in U.S. history, the Los Angeles County government is facing about $89 million in budget cuts.
To close the budget gap, the county will have to leave hundreds of vacant positions unfilled, but no layoffs are expected, said Fesia Davenport, the county's chief executive, at a news briefing Monday.
The fire recovery estimate includes $1 billion in lost revenue, mostly from property taxes, and $1 billion to cover soil testing, debris removal and beach cleanup and other costs, Davenport said.
The county can be reimbursed by the federal government for some of those costs, but must front the money. Davenport said the reimbursements for the January fires, which devastated Altadena, Pacific Palisades and surrounding areas, could take years.
L.A. County announced this month that it planned to pay $4 billion to settle nearly 7,000 claims of child sexual abuse that occurred in juvenile facilities and foster homes, most from the 1980s through the 2000s. If approved by the Board of Supervisors later this month, it will be the largest sex abuse claims settlement in U.S. history.
Read more: In unprecedented payout, L.A. County will settle sex abuse claims for $4 billion
'We knew that the cost of the settlement would be unprecedented, and that it would have a devastating impact on our budget,' Davenport said at the briefing, where she unveiled the county's roughly $48-billion recommended budget for the upcoming fiscal year.
The sex abuse claims arose from Assembly Bill 218, a 2020 state law that gave victims of childhood sexual abuse a new window to sue, even though the statue of limitations had passed. Thousands of men and women came forward saying they had been sexually abused as children while in county custody.
Davenport said the county expects to pay hundreds of millions of dollars every year until 2030, followed by smaller payments through 2051. In addition to taking out bonds, she said, the county will need to tap into its rainy day fund, which has about $1 billion in it.
'I cannot remember the last time we tapped into a rainy day fund,' she said.
Davenport added that home sales in L.A. County have declined by 41% since 2021, putting more pressure on the county budget, which relies heavily on property taxes.
In the city of Los Angeles, the top budget official has said that layoffs are 'nearly inevitable,' with a budget shortfall of nearly $1 billion due in part to ballooning legal payouts, weaker than expected tax revenue and pay raises for city employees.
Read more: L.A. city budget shortfall grows to nearly $1 billion, with layoffs 'nearly inevitable'
Under Davenport's recommended spending plan, most county departments would make a 3% budget cut, and 310 vacant positions, out of about 117,000 budgeted positions, would be eliminated countywide. Davenport declined to say whether layoffs were anticipated in future years.
'When you start talking about layoffs prematurely, it makes people very nervous,' she said. 'You start a rumor mill.'
The public works, regional planning and mental health departments, as well as the Sheriff's Department, would be exempt from the cuts, according to a county spokesperson.
The Trump administration has further complicated the financial picture for L.A. County, which receives at least 13% of its budget from the federal government. The county Department of Public Health was recently notified that it would lose about $45 million in federal grants related to COVID-19, a decision that Davenport said has been blocked by a temporary restraining order, for now.
'The potential for federal funding cuts is very real and could destabilize the county's budget,' she said.
Davenport said the recommended budget includes $1.1 billion in spending for homeless services through Measure A, a half-cent sales tax that voters approved in November, and $11.9 million for county government reform approved by voters last year through Measure G.
The Board of Supervisors will discuss the recommendations Tuesday, with the final budget to be adopted in September.
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
This story originally appeared in Los Angeles Times.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 days ago
- Yahoo
After 9K domestic violence calls in 2 years, Warren PD unveils Operation Cycle Break
The Brief Warren PD has responded to 9,000+ domestic violence calls in the past two years. A new program, Operation Cycle Break, gives support to survivors Police now has to follow up on reports in person instead of by phone. WARREN, Mich. (FOX 2) - Warren police have responded to over 9,000 calls related to domestic violence in the past two years. "We've learned that a clear majority of cases in our city have had a domestic violence nexus - including many of our homicides," said Warren PD Commissioner Eric Hawkins. Dig deeper Domestic violence is a crime that's often underreported and often a generational, vicious cycle."Children who grow up in an abusive home often learn to accept those patterns of behavior," said Dr. Sharman Davenport, Turning Pointe Macomb. "They either use anger and abuse as a way of coping and controlling their world, or in other cases, they may become the victim, because that's what they've seen." "How can we break the cycle? That's where we came up with this name," Hawkins said. It is called Operation Cycle Break — uniting police, prosecutors, judges, researchers at Wayne State University and counselors at Turning Point to tackle domestic violence. The help provides everything from ensuring survivors have immediate support, to making mandatory counseling a bail condition. "We've never seen anything like this, I've never seen anything like this," said Chief Judge John Chmura, 37th District Court. "And I don't know of any court that's done anything like this in my 29 years in the bench," In the past when police would follow up on reports of domestic violence, it would just be through a phone call. Now with Operation Cycle Break, they are meeting in person. "It's going to change the way they approach domestic violence cases and it will really help survivors feel important," said Dr. Davenport. "They'll feel what's going on with them is a crime and that somebody's willing to step up and do something about it." They say it has already seen positive results. Since the initiative launched around 30 days ago, the city has seen more warrant requests granted, enrolled 20 defendants into counseling — and reached 37 survivors who may have previously slipped through the cracks. "This will make a huge difference in the lives of survivors in Warren," Davenport said. "Because now they will have the opportunity to be heard and make sure their cases move forward." The Source Information for this story was taken from Friday's Warren police press conference.
San Francisco Chronicle
4 days ago
- San Francisco Chronicle
S.F. Mayor Lurie wants to end free parking in Golden Gate Park
Anyone who's unfurled a picnic blanket in Golden Gate Park has probably witnessed the line of cars packing its curbs, taking advantage of free parking. That privilege could soon end. San Francisco Mayor Daniel Lurie has introduced budget legislation to make visitors pay to stow their cars, probably at a rate of $3 an hour, though the cost would fluctuate according to demand. When Recreation and Park officials proposed the idea earlier this year, they hoped to stave off a budget deficit that could balloon to $15 million by 2027. Parking fees were among a slew of possible funding initiatives put forward during a Rec and Park Commission meeting in late February. Other recommendations included a $5-an-hour charge to rent a tennis court. Without a steady and reliable new revenue stream, the parks department could be forced to make crippling cuts across its system, including closing swimming pools and offering fewer summer camps. Additionally, staff might have to mow ball fields less frequently, scale back the gardener apprentice program and reduce custodial facilities. 'San Francisco's parks are one of our greatest treasures,' Lurie wrote in a statement. 'And despite serious fiscal challenges, our budget offers a fair, responsible way to keep them clean, safe and open to everyone.' He emphasized the importance of prioritizing core services as the city makes agonizing cuts across its departments. The Board of Supervisors would have to approve Lurie's parking legislation for it to take effect in 2027. Lurie must sign the budget into law by Aug. 1. • Live event: Can the Bay Area save public transit? Join reporter Rachel Swan, Muni head Julie Kirschbaum, BART GM Bob Powers and State Sen. Scott Wiener live at Manny's at 6 p.m. on June 18. Get your ticket. Parking kiosks alone could generate a windfall for city parks, with revenue projections of $1.2 million in the upcoming fiscal year, and $9.2 million the following year. Although San Franciscans often grumble over parking fees, some call the Golden Gate Park proposal a worthy trade-off. 'A lot of people come to the park to visit the museum or the botanical gardens, and I don't think it's a huge ask for them to pay a few dollars for parking,' said Steffen Franz, president of the neighborhood group Friends of Lafayette Park in Pacific Heights. While Golden Gate Park has two paid parking lots, spaces are free along Martin Luther King Drive — the main artery other than John F. Kennedy Drive, where cars are not allowed on the east section. For the time being, motorists can also find free street parking on Nancy Pelosi or Bowling Green drives or JFK Drive on the west side of the park.
CBS News
4 days ago
- CBS News
Sacramento County supervisors agree to reverse budget cuts to district attorney's office
Sacramento County DA says budget cuts to department would mean no misdemeanor prosecutions Sacramento County DA says budget cuts to department would mean no misdemeanor prosecutions Sacramento County DA says budget cuts to department would mean no misdemeanor prosecutions SACRAMENTO – The Sacramento County Board of Supervisors agreed Wednesday night to restore proposed budget cuts to the district attorney's office. The move comes after District Attorney Thien Ho testified inside the chambers that the cuts would lead him to halt prosecutions of all misdemeanor cases. He turned the board chambers into more of a courtroom, arguing his case against cuts. "The word 'recommendation' means that I approve of it, that I consent to it, and I'm going to say right now I've never consented, approved, or recommended any of these cuts," Ho said. "If we cut by $1.7 million, I won't have the vacancies to fill the misdemeanor cases." Ho said his department was already working with limited resources. "Because we are hanging together by duct tape and superglue," Ho said. Ho made the case that cuts of $1.7 million would force him to cut seven attorney positions from his staff. Low-level crimes like vandalism and burglary would be left with no staffing to prosecute. "I can't cut enough photocopies to meet $1.7 million," Ho said. The packed chambers watched as Ho made the case that these recommendations were not his, but forced on him by the board. A point that Supervisor Phil Serna refuted, leading to an exchange between the two inside the chamber. "This recommendation of the cuts is coming from the CO's office and I've also been very clear about what that would be reflected in," Ho said. "I disagree wholeheartedly," Serna said. "He doesn't have the authority to make the recommendations. He just doesn't. It's not a fact, so we can agree to disagree, but it's not a fact." "Well, we'll disagree, respectfully, mister chair," Ho said.
