Latest news with #FesiaDavenport
Los Angeles Times
30-06-2025
- Politics
- Los Angeles Times
Letters to the Editor: Fair pay for L.A. County employees isn't a burden on the public's resources
To the editor: Complaining about Los Angeles County's budget, while being responsible for it, reveals a serious contradiction ('Looming raises for L.A. County employees could cost $2 billion, CEO says,' June 24). The L.A. County supervisors and Chief Executive Fesia Davenport want us to believe that fair pay is a burden on the public's resources. It is not. The Department of Public Social Services, for example, ensures county residents receive food stamps, Medi-Cal, housing, job support and essential care. These services keep families stable and communities afloat. Does the board really think now is the time to undermine L.A. County's safety net? The board's actions do more than dismiss the work of 55,000 county employees represented by SEIU 721. They effectively echo the Trump administration's efforts to defund public welfare systems that millions rely on. County workers belong to the same community and electorate that put the board in office. The board can't claim to serve the county while turning its back on those who serve and live in it. Denying workers a fair agreement isn't more fiscally responsible — it's a failure of duty to Angelenos on multiple levels. Christine Truong, West Covina
Los Angeles Times
24-06-2025
- Business
- Los Angeles Times
Looming raises for L.A. County employees could cost $2 billion, CEO says
Los Angeles County's looming agreement with its biggest labor union is expected to cost a little more than $2 billion over three years — the latest hit to a budget besieged by financial woes. The cost estimate, provided to The Times on Monday by the county chief executive office, will necessitate more belt-tightening for a government that's running out of notches. The deadly January wildfires are expected to cost the county $2 billion. The Trump administration has threatened cuts that would ravage the county's public health budget. The L.A. County supervisors agreed this year to a historic $4 billion sex abuse settlement — the largest of its kind in U.S. history — and required most departments to make 3% cuts to help pay for it. The cuts aren't done, Chief Executive Fesia Davenport warned the supervisors Monday as she walked them through the latest version of the county's sprawling $49-billion budget. To pay for salary bumps and bonuses for county workers in the tentative labor agreement, the updated budget slashes $50.5 million, cutting funding for parks, swimming pools and violence prevention, among other programs. Soon, each department will need to make an additional 5.5% cut, said Davenport, whose office drafts the budget and leads labor negotiations. 'We are taking this extraordinary step because we simply have no alternative,' she said. The supervisors unanimously approved the recommended budget Monday, which included an initial round of cuts to pay for some of the expected labor costs and the multibillion-dollar sex abuse settlement. Despite their unanimous vote, the supervisors had little nice to say Monday about the plan. 'While the budget may look like it's healthy, it's a sick patient,' said Supervisor Hilda Solis. As a result of the cuts, two probation offices are expected to shutter. County swimming pools will shut down earlier. Regional parks will now close two days a week. 'Like every other Angeleno, I'm mad too,' said Supervisor Holly Mitchell, who noted a petition she had seen on Nextdoor that morning protesting the two-day-a-week closure of Kenneth Hahn State Recreation Area in her district. The county announced last week that it had reached a tentative agreement with SEIU 721, which represents 55,000 county workers. The agreement, which still needs to be ratified by the union membership and the supervisors, includes a $5,000 bonus in the first year, followed by a 2% cost of living adjustment and $2,000 bonus in the second year and a 5% salary increase the third year. The county is in negotiations with 16 smaller unions. The $2.1-billion price tag assumes that those unions will adopt similar salary increases and bonuses as SEIU 721. To pay for the new labor costs, the chief executive office said the county will dip into its general fund for $778 million. The remaining $1.2 billion or so will come from federal and state funds meant for staffing costs. David Green, the head of SEIU 721, said his members were 'thrilled' with the tentative contract — the fruit of months of negotiations and a two-day strike this spring. Last year, the city of Los Angeles agreed to contracts covering 33,000 union workers, many of whom would receive a pay increase of 24% over the next five years. The contracts, which the city estimated would add $3.5 billion in costs over five years, were a contributing factor in a massive budget shortfall that the City Council closed with layoffs and other spending cuts. Green, who negotiated with both the city and county, said comparing the two was like 'apples and oranges.' 'The economic climate has gotten worse in a lot of ways,' he said. 'I think you felt a little bit of that in L.A. county bargaining.' County supervisors appeared supportive of the agreement in Monday's meeting, though quick to pan the overall financial picture. 'This is a budget I don't like — I don't think anyone does,' said Hahn. But it could be worse, she noted. 'I know this is a budget ... that won't put us in the hole,' she said.
The Guardian
15-04-2025
- Business
- The Guardian
LA county facing financial turmoil after wildfires and $4bn abuse settlement
Los Angeles county is experiencing unprecedented financial challenges amid growing costs from the historic wildfires that ravaged the region earlier this year and a $4bn sex abuse case settlement, the county CEO said this week. The region faces roughly $2bn in expenses related to January's fires, which killed 30 people and destroyed nearly 17,000 structures. Earlier this month the county announced it had a $4bn agreement to settle thousands of claims of sexual abuse in juvenile facilities dating back 1959 – the largest such settlement in US history. The potential loss of hundreds of millions of dollars in federal funding and slower property tax revenue growth have added to the county's mounting challenges. The county is expected to cut its budget by nearly $90m dollars under a spending plan proposed by the LA county CEO, Fesia Davenport. 'We are in uncharted territory with these simultaneous pressures on our budget,' Davenport said. 'Any of these alone would be daunting, but taken together, these challenges – the wildfires, the AB 218 settlement and the threat of deep cuts in federal funding – are cause for great concern.' The settlement will impact the budget for decades to come, Davenport said, with the county anticipating payments of hundreds of millions of dollars through 2030 and millions more through 2051. Federal reimbursements for some wildfire costs are expected to take years, Davenport said. The county is cutting 3% from department budgets and plans to eliminate more than 300 currently vacant positions. With proposed supply cuts, delayed equipment purchases and a reduction in the scope of certain programs, the county expects to save $88.9m, according to a county statement. Layoffs are not anticipated at this time, Davenport's office reported, adding that the recommended budget 'reflects a high degree of caution, restraint and uncertainty in the face of the cascading budgetary pressures'. Meanwhile, the city of Los Angeles continues to reel from the impact of the January wildfires. The city is facing a nearly $1bn budget gap that officials have said 'makes layoffs nearly inevitable'. 'We are not looking at dozens or even hundreds of layoffs, but thousands,' the city administrative officer Matt Szabo told the city council last month.
Yahoo
15-04-2025
- Business
- Yahoo
LA County unveils tight 2025-26 budget
LOS ANGELES - LA County unveiled its 2025-26 budget Monday. What we know Multiple Los Angeles County government departments would face 3% budget cuts in the coming fiscal year under an austere recommended spending plan that also includes the elimination of 310 vacant positions -- but no layoffs -- and other cutbacks. By the numbers The $47.9 billion proposal reflects efforts to "offset extraordinary budget pressures," according to a statement from the county, including more than $1 billion in costs related to the January wildfires. The county will also begin to feel the pain of a proposed $4 billion settlement of nearly 7,000 claims of sexual abuse against county workers, mainly at probation camps and halls. Presenting the budget to members of the media on Monday, County CEO Fesia Davenport said the county is also facing the possible loss of hundreds of millions of dollars in federal funding. "Our revenue outlook is challenging -- to put it mildly," Davenport said. "The amount of new ongoing funding in this budget is at a five-year low." With the change in presidential administration, at least 13% of the county's budget that comes through federal assistance, and billions in grants and funding, could be at risk, she said. The state budget is also at risk of losing federal funds, which could trickle down to impact the county. What they're saying "We are already seeing it happen," Davenport said, highlighting the recent federal proposed rescinding of $45 million in Public Health funds. "We are in uncharted territory with these simultaneous pressures on our budget," Davenport said in a statement. "Any of these alone would be daunting, but taken together these challenges -- the wildfires, the AB 218 (sex abuse) settlement, the threat of deep cuts in federal funding -- are cause for great concern." Davenport stressed the abuse settlement is "by far the costliest in county history." With more than 6,800 claims, the settlements are expected to be paid out through a combination of county funds, budget cuts and borrowing over a number of years, if approved by the county Board of Supervisors. Davenport said the impact of the payments could take a hit on the county budget through 2050-51. Wildfire recovery costs are also expected impact the region over the coming years, possibly reaching as high as $250 billion. The county expects to recover at least some of its portion of those costs from the Federal Emergency Management Agency, Davenport said. A large part of the budget is also affected by a 41% decline in home sales driven by higher interest rates, which directly put pressure on property tax revenue, she said. In addition to eliminating 310 vacant positions, the budget proposal also includes $50 million in cuts that will be achieved by cutting supplies, delaying equipment purchases and reducing the scope of some county programs. Overall the budget includes roughly $88.9 million in targeted cutbacks. "The hope is that as we manage, very carefully. all of the pressures and we look at our revenues, and we do things like not incur new expenses -- we don't put ourselves in a position where we have to implement layoffs," Davenport said. County officials insisted that despite the cost-cutting, the spending proposal "is committed to sustaining the county's essential safety net responsibilities and to funding key priorities set by the Board of Supervisors." Funding to homeless programs, youth development, parks and recreation and other services would continue to remain unharmed. Close to $12 million is allocated in the spending plan to ramp up Measure G efforts -- a ballot measure passed in November 2024 to overhaul the County Charter. Davenport is scheduled to present the budget proposal to the Board of Supervisors on Tuesday. Following the board presentation, public hearings will be scheduled for May and final changes will be adopted to the recommended budget in June. The supplemental budget is expected to be adopted in September.
Yahoo
14-04-2025
- Business
- Yahoo
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.
