LOS ANGELES, CA – Today, the Los Angeles City Council voted 12-1 to pass the revised FY 2026-27 budget, following weeks of public hearings, department-by-department review, and extensive analysis by the Chief Legislative Analyst and City Administrative Officer.
The final budget preserves the core structure of the Mayor’s proposed budget while making targeted adjustments to strengthen the City’s fiscal position, protect core services, and reflect priorities raised by Councilmembers and the public.
“This budget reflects a serious commitment to improving quality of life for Angelenos while strengthening the City’s long-term financial health,” said Budget and Finance Committee Chair Katy Yaroslavsky. “We are in a stronger position than last year, but we still face real fiscal uncertainty, rising costs, and major threats to future City revenues. This budget invests in core services, maintains key investments in homelessness, public safety, fire response, and infrastructure, and puts the City on stronger financial footing.”
The Revised Budget increases the City’s Reserve Fund to $515.1 million, or 6.00% of General Fund revenues, and increases the Budget Stabilization Fund transfer from $9 million to $14.5 million. Together, the changes bring combined General Fund reserves to approximately 9% of General Fund revenues.
The revised budget also maintains the Mayor’s proposed goal of hiring 510 LAPD officers to keep pace with projected attrition, protects core Fire Department funding, expands the Unarmed Model of Crisis Response program, preserves interim housing and homelessness interventions, and invests in Clean Corridors, tree trimming, graffiti abatement, deferred maintenance, and sidewalk and street improvements.
The budget also makes additional investments to reduce liability exposure and improve compliance with the City’s financial policies, including funding for City Attorney positions, CAO liability mitigation support, and an actuarial study on liability payouts.
“Our compliance with fiscal policies directly affects the City’s credibility and borrowing costs, especially as Los Angeles prepares to finance $2 billion for the Convention Center expansion,” Yaroslavsky said. “This budget sends a clear signal that the City is taking its fiscal responsibilities, and its future, seriously.”
Yaroslavsky thanked Mayor Bass, Council President Marqueece Harris-Dawson, Chief Legislative Analyst Sharon Tso and her team, City Administrative Officer Matt Szabo and his team, members of the Budget and Finance Committee, and City staff for their work throughout the budget process. She also thanked Budget Committee Vice Chair Bob Blumenfield, noting this was his final budget as a member of the Council and expressing gratitude for his mentorship, partnership, and steady guidance throughout the process.
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