LA Mayor Bass Proposes $14.8 Billion Budget for 2026-27

Los Angeles Mayor Karen Bass unveiled a proposed $14.8 billion budget for fiscal year 2026-27 on Monday, prioritizing homelessness initiatives, public safety and basic city services while avoiding layoffs amid rising revenues.

The plan, which officials described as balanced, includes $8.59 billion from the general fund and $6.26 billion in special funds for targeted uses. It relies on projected increases in business, property and sales taxes to offset rising costs, building a reserve of about $490 million for emergencies and stability. City Administrative Officer Matt Szabo noted the budget marks progress after last year's closure of a nearly $1 billion deficit, which required service reductions. "We are making steady steps toward stability, certainly compared to where we were last year," Szabo said.

A significant portion, around $778 million, targets homelessness, with $104 million allocated to the Inside Safe program. This initiative moves people from street encampments into temporary housing like hotels and motels, alongside funding for interim options such as tiny-home villages, shelters and outreach services. Bass has credited the approach with reducing unsheltered...