County CEO Sachi Hamai is projecting a $1 billion drop in revenues this fiscal year, set to end June 30, and estimates that revenues will decline by another $1 billion-plus next year.
“This is a budget process unlike any we’ve ever faced before, even in previous downturns,” Hamai said in a statement. “Although the county has its strongest fiscal foundation ever, thanks to our long history of prudent budgeting and investments in our Rainy Day fund, we are in a profoundly challenging economic environment that may get worse before it gets better.
“There are many factors outside the county’s control, including the length and severity of the COVID-19 crisis, and the amount of assistance we will receive from the state and federal governments,” Hamai added.
The budget proposal — set to be reviewed by the Board of Supervisors on Tuesday — was drafted before the current crisis, making it hard to draw any conclusions about how the county’s priorities might shift going forward.
The process for finalizing the budget takes months during a typical year, with revisions made before the budget is adopted in June and then additional changes made before the budget is finalized in September.
Current recommendations emphasize health and mental health programs, including funding for more inpatient mental health beds. The proposed budget also focuses on developing and preserving affordable housing, in line with the county’s efforts to mitigate homelessness.
Measure H sales tax revenues, which are used to fight that battle, are likely to decrease as a result of the economic downturn triggered by the global pandemic.
“In fact, all recommendations in the proposed budget are likely to be reconsidered, given the deep uncertainties ahead,” according to a statement released by the county.
“We are hoping for the best but preparing for the worst as we chart the course ahead,” Hamai said. “As always, we will prioritize vital services to the public and our essential role as the safety net for our most vulnerable residents.”
The Board of Supervisors has already frozen hiring for all non-essential positions and asked department heads to prepare for program cuts in the year ahead.
The county does expect to close out the fiscal year with nearly $200 million in cash, though that reflects a drop of $950 million from earlier projected levels.
The county’s economic health relies in large part on federal and state funding that is also at risk. Los Angeles County officials have joined with the National Association of Counties to advocate for full reimbursement of COVID-19 expenses by the Federal Emergency Management Agency. NAC has also asked the federal government to allow municipalities to use funding from the federal coronavirus relief bill to offset revenue losses.
For Los Angeles County’s 2020-2021 recommended budget, visit: https://ceo.lacounty.gov/budget/.
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Eric says
William, you asked for the truth I gave you the info to look at and yet you dance around the issue. What does my personal spending have to due with this article. You sound like a politician. You wave smoke and mirrors and say to the people, “ can you see?”. LMAO. Just FYI I applied 10 years ago for LA county fire, at the 3 day testing site in the Long Beach sports arena, there was a documented 32,000 test takers from all over the world. Everyone knew if they were hired it was like winning the lottery. You will become rich. Look at the data, when you have a career that only requires a high school diploma and a couple fire classes and you can make easily 200k plus benefits , there is something wrong. After 10 years a typical la county fireman can pull in 300k a year with overtime. All while having a lot of time off to develop side business’s which many fireman have.
William says
So, Eric. There’s more to it than the “truth”. You have an ax to grind. I knew something was up with you.
They say “The truth will set you free.” so why aren’t you free? You’re bitter, angry, resentful and more. I don’t have a problem but not you. You have to broadcast your complaint. Take it to someone who can do something about it.
That’s the “truth” right? So?
Now, you’re upset because I’m not upset. I bet you go around repeating that till people start avoiding you for being such a whiner.
Good thing you didn’t become a firefighter.
William says
Trump was right about it going down to zero.
He was talking about the Spanish flu.
Otherwise, he’s been wrong about everything including his bone spurs, hs weight, his “stable genius” nonsense, and everything else bj, Ron and Trumpist#1 have ingested. It’s worse than Lysol.
Look at what the TRUMP-16 virus has done to their brains. Picture an egg sizzling on a hot griddle for 3 1/2 years, then read their posts here. ‘nough said.
Iran and North Korea are still doing their nuclear stuff. Iran had been keeping their agreement while President Obama was in office but not any more.
William says
FAILURE IS TRUMP’S MIDDLE NAME
U.S. intel warned Trump over a dozen times in January and February while the “hardest working president”, his words, was golfing and holding rallies and saying of the pandemic “That’s their hoax.” referring to Democrats.
Some “hoax” bj, Ron and Trumpist#1. Where y’all hiding (the last 2)?
That’s what the news media and the smart ones among us are pointing to. Trump’s EPIC FAILURE to respond quickly in January and February.
He either didn’t believe our intelligence community over Fox News or he lied about it. FAILURE FAILURE FAILURE
Oh, he said he banned travel from China. Yet, over 53,000 Americans are dead. Well, that ban sure worked.
Defend that bj, Ron and Trumpist#1….if you can or FAIL trying.
Eric says
They can start with cutting all the ridiculous overtime firefighters get. That will save a billion dollars easily.
William says
Oh, Eric. Dear Eric.
You need to put that comment on the roof of your house in bright colors in case it ever catches fire. That way they can save on overtime by letting it burn to the ground.
Eric says
The truth hurts William. Your probably a fireman.
William says
Nope. So, now that we’ve established that you don’t know what you’re talking about, you have no creds here.
And, what is this “truth” that Eric thinks he knows?
Please tell us and don’t leave us guessing.
Eric says
My truth is based upon documented facts. Go to Transparency California and open your eyes. The data doesn’t lie. And what is your truth? LMAO
William says
Go ahead, Eric. Be careful what you wish for.
Cut those pensions and when fire departments are short staffed, you will have to put out your own house fire.
See how the world works.
I bet you fritter away lots of $$$s every month that isn’t as essential as fighting fires but you don’t complain about the cost of those things. Movies, cable, fancy phones, booze, etc.
But, I doubt you’d admit to that funny guy.