UPDATE: The Los Angeles City Council has just launched a critical initiative to tackle its lingering financial crisis, as the newly formed Budget and Finance Advisory Committee met for the first time on November 24, 2025. This comes after the city faced a staggering $1 billion budget deficit earlier this year, prompting urgent action to ensure fiscal stability.
Councilmember Katy Yaroslavsky, who chairs the committee, emphasized the need for a comprehensive approach to the city’s budget problems. “We cannot keep repeating the same budget process every year and expect different results,” she stated. The committee aims to address deeper structural issues over the next two years, moving beyond temporary fixes to create sustainable solutions.
The inaugural meeting kicked off with the election of Ron Galperin, former City Controller, as chair, and Jessica Lall, managing director at CBRE, as vice chair. The five-member panel also includes experts from various sectors, signaling a serious commitment to reform. “This is an important opportunity to strengthen the city’s financial foundation,” Galperin noted.
Despite closing the budget gap through significant cuts and labor agreements, the city continues to grapple with unstable revenues and rising liability costs. City Administrative Officer Matt Szabo warned that the reserve fund remains perilously close to the city policy minimum of 5%. He underscored the need for a more robust reserve to weather economic downturns.
The committee’s focus will be on long-term solutions, including better revenue planning, improved transparency, and tackling soaring liability costs that threaten public services. They will meet monthly, with the next session scheduled for January 12, 2025. Yaroslavsky has urged members to engage with the community, pushing for public meetings to ensure transparency and input from residents.
Neighborhood Council Budget Advocates have expressed cautious optimism about the committee’s formation. Advocate Lionel Mares called for a focus on protecting city jobs and preventing layoffs, reiterating the importance of community involvement in the budgeting process.
As Los Angeles faces ongoing financial challenges, the outcomes of this committee’s work could significantly impact the city’s future fiscal health. Residents and stakeholders are eager to see actionable steps taken as the committee embarks on this vital journey toward financial recovery.
The urgency of these developments cannot be overstated—Los Angeles is at a crossroads, and the decisions made by this advisory group will shape the city’s economic landscape for years to come. Stay tuned for updates as the committee progresses with its mission to restore financial stability to Los Angeles.
