It’s not really accurate to call the pandemic good times, but when it comes to the Los Angeles city budget, the last few years have turned out to be pretty bountiful.

More than a billion dollars in federal and state aid poured into the city, giving former mayor Eric Garcetti and the city council a cushion of money to experiment with programs and policies while still meeting their expenses. LA Could Buy Hotels for Homeless Housing, Launch Pilot Programs to Send Social Workers and Mental Health Experts to Not

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violent 911 calls involving the homeless give grants to small businesses and restaurants and send $1,000 monthly payments to 2,000 low-income families for a year.

The financial outlook has changed, which means Mayor Karen Bass and the city council have to get used to saying no to many requests for funding. The federal government has turned off the pandemic relief tap (although the city is eligible for infrastructure and climate funding from President Biden’s two major spending bills). With tax revenues declining and a recession possible, the state is facing a deficit for the first time in years.

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in the same boat. The city comptroller expects sales to grow less than 1% in the fiscal year beginning July 1, assuming there is no recession. The city’s spending is likely to rise significantly due to inflation, increases in workers’ compensation, increased pension obligations and the cost of Inside Safe, an ambitious new program to move homeless people from encampments to hotels and then to permanent housing.

Bass wrote to department managers in February to clarify their expectations: Don’t expect budget increases. Easing the homelessness crisis is her top priority and her budget, which will be released next month, will reflect that. And if there is extra money next year? Bass wants to invest it in solving homelessness and making the city safer and more affordable.

Bass is right to be laser-focused on homelessness. It is the most pressing problem in Los Angeles and addressing the causes and consequences of homelessness will ultimately make the city better for everyone. But there has been no consistent funding or political will in recent decades to make a lasting dent in the city’s homeless population.

The upcoming budget will be a test of Bass priorities and the City Council’s willingness to go along with them. What will it cost to move 17,000 homeless people off the street into housing, as Bass promised during the mayoral campaign? Inside Safe is an important strategy, albeit an expensive one, with the city spending more than $100 per night per hotel room. Since the start of the program at the end of December, more than 400 people have been given temporary housing. As more encampments are cleared, more people will move into hotel rooms. The goal is to move people into permanent homes within two months, but the lack of affordable housing can extend hotel stays, driving up the cost of the program.

The City Council approved $50 million to jump-start the effort, but the price tag to continue the program will be steep. The mayor has been pushing President Biden for more funding, which could help. So is the ULA measure, the voter-approved tax on high-value real estate transactions, which will help accelerate the purchase and construction of permanent affordable housing if it survives a legal challenge.

What are city leaders willing to sacrifice to pay for this unprecedented effort? How will solving homelessness compare to other priorities, including hiring more police officers (a new officer costs about $175,000 a year in pay and benefits) and expanding non-statutory

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enforcement of public safety programs? And when will the city be able to make the longer term investments such as hiring and training new city workers in each department (the city has a 20% vacancy rate due to retirements), modernizing the aging buildings, sidewalks and other infrastructure and technology upgrade to deliver services more efficiently? These are not easy questions. Bass is wise to make homelessness her top priority, but she and the city council must also lay the foundations now to ensure LA’s financial stability and future success.