It’s not entirely accurate to describe the pandemic as “good times,” but when it comes to the City of Los Angeles’ budget, the past few years have proved to be quite bountiful.
More than a billion dollars in the federal government 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 and still meet their expenses. LA has been able to purchase hotels for the homeless, set up pilot programs to send social workers and psychiatrists to non-violent homeless services, provide grants to small businesses and restaurants, and provide $1,000 a month to make payments to 2,000 people living with dementia. low incomes Income to pay families for a year.
The financial outlook has changed, forcing Mayor Karen Bass and the city council to get used to saying “no” to many requests for funding. The federal government cut off pandemic aid (although the city is fine with infrastructure and climate funding from President Biden’s two major expenditures). With tax revenues slowing and a recession looming, the state is facing a deficit for the first time in years.
Los Angeles is in the same boat. The city government expects revenues to grow less than 1% in the fiscal year beginning July 1, assuming there is no recession. City spending is likely to rise significantly due to inflation, worker wage increases, larger pension obligations and the cost of Inside Safe, Bass’ ambitious new program to move homeless people from camps to hotels and then to permanent housing.
In February, Bass wrote to department heads and made their expectations clear: Don’t expect budget increases. Easing the homeless crisis is their top priority and their budget, which will be released next month, will reflect that. And if there is extra money next year? Bass wants to invest it to solve homelessness and make the city safer and more affordable.
Bass is right when he focuses on homelessness. This 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 get involved. What will it cost to get 17,000 homeless people off the streets into apartments, as Bass promised during the mayoral campaign? Inside Safe is an important, albeit expensive, strategy given the city’s spending of 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 moved to temporary shelters. As more camps are evacuated, 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 could extend hotel stays and drive up the cost of the program.
The city council approved $50 million to boost the effort, but the price for continuing the program will be high. The mayor urged President Biden for more funding, which could help. So is the ULA, the voter-approved tax on high-value real estate transactions that would help accelerate the purchase and construction of sustainable, affordable housing — if it survives a legal challenge.
What are city leaders willing to sacrifice to pay for this unprecedented effort? How does tackling 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 public safety programs beyond law enforcement? And when will the city be able to make the long-term investments, such as hiring and training new city workers in all departments (the city has a 20% vacancy rate due to retirements), upgrading the aging buildings, sidewalks and other infrastructure and upgrade technology to deliver services more efficiently? These are not easy questions. Bass is doing well to make homelessness her top priority, but she and the City Council also need to lay the groundwork now to ensure LA’s financial stability and prosperity into the future.
Source: LA Times