Nearly two dozen state lawmakers from Los Angeles County are requesting more than $1.89 billion to support L.A.’s wildfire recovery efforts.
The letter to Assembly Budget Committee Chair Jesse Gabriel – who is also part of the L.A. County Legislative Delegation – was sent Monday, March 24, following meetings that some legislative leaders had earlier in the day with a delegation of L.A. city officials, led by Mayor Karen Bass.
The trip to Sacramento by Los Angeles city officials came about 2½ months after the January wildfires that devastated communities throughout L.A. County – and just days after city officials received the shockingly grim news that the city was facing an approximately $1 billion budget gap in the 2025-26 fiscal year.
“We are certainly here seeking assistance — one with our general budget, but also because of the wildfires,” Bass told City News Service about the reason for the trip to Sacramento.
“This is actually the first time in recent history that the (Assembly) speaker nor the head of the (state) Senate are from the L.A. area,” Bass said. “They’re both from the Bay Area. It’s important that we’re here, that we’re visible and that we’re clear about what Los Angeles needs to have an excellent recovery and to prepare for the next year’s World Cup.”
The L.A. city delegation was scheduled to meet with state Senate President Pro Tem Mike McGuire, Assembly Speaker Robert Rivas and Senate Budget Committee Chair Scott Wiener – none of whom are from Southern California.
In addition, L.A. city officials met with Assemblymember Tina McKinnor and Sen. María Elena Durazo, the chair and vice chairs, respectively, of the L.A. County Legislative Delegation.
By early evening, McKinnor, D-Inglewood; Durazo, D-Los Angeles; and 20 other legislators, had signed a letter addressed to Gabriel, D-Encino, and Assemblymember Sharon Quirk Silva, D-Fullerton, who also sits on the Assembly Budget Committee, requesting additional aid for Los Angeles.
“This natural disaster is not a partisan issue — it is a people issue — and we will put the needs of the people of Los Angeles first. … Today’s budget request is essential to make sure the city of Los Angeles has the resources necessary to rebuild every neighborhood impacted by the devastating January 2025 fires,” McKinnor said in a statement.
More than 16,000 homes and other structures were damaged or destroyed in the Pacific and Eaton fires and, according to McKinnor’s office, more than 180,000 people were displaced.
A press release from McKinnor’s office noted that the city of L.A. expects a “significant” drop in revenue in the coming year due to losses in property and sales tax revenues.
Some of the $1.89 billion that the legislators requested would, if approved, come in the form of a loan. The funding would break down as follows:
- $638 million to protect city services under budgetary strain and to address liability costs. The money would allow the city to continue to pay for street, sidewalk or street light improvements, fund liability payouts, replenish reserve funds and make up for lost revenues from the Palisades fire.
- $301 million, most, if not all, of which would be a loan to support disaster recovery expenses, pending reimbursement from the Federal Emergency Management Agency.
- $750 million to invest in wildfire mitigation and resiliency efforts, including a $700 million loan to support electric power grid upgrades.
- $56.5 million to enhance fire safety and fire suppression, including funds to purchase fire equipment and to rebuild the decommissioned Palisades Reservoir.
- $72.8 million or more to support workers and residents affected by the fires through support services, housing vouchers or by employing Angelenos to help with cleanup and other recovery efforts.
- $75.5 million to expedite public assistance.
Four L.A. City Council members made the trip to Sacramento with Bass. They included Council President Marqueece Harris-Dawson; Council President Pro Tem Bob Blumenfield, who is also vice chair of the council’s budget committee; Budget Committee Chair Katy Yaroslavsky; and Councilmember Adrin Nazarian, who previously served in the Assembly.
Bass represented California’s 47th State Assembly District in 2004, and later served as the 67th speaker of the Assembly in 2008. She also represented California’s 33rd Congressional District from 2011 to 2022.
The mayor touted her experience and said relationships at the state and federal level are “very important.”
While the city may not receive state aid immediately, Bass expects meetings with state lawmakers will move the needle for L.A.
“You know the budget here, there will be the May revise, which happens 30 days after taxes are due,” Bass told CNS. “So, the state will have a much better picture of its economy.”
“They prepare the budget, which is due by mid-June, and so hopefully, there will be some additions in that budget that will provide resources for the city and the county,” she added.
The trip to Sacramento comes a week after elected officials learned they face a nearly $1 billion gap in the next fiscal year. Bass and the City Council are already exploring potential solutions to right-size the budget —which will require tough financial decisions that could lead to thousands of layoffs and cuts to services.
City Administrative Officer Matt Szabo reported a $61 million starting gap, which will be exacerbated by $315 million in lower-than-anticipated revenue from taxes, $100 million in liability payouts that are expected to increase, $275 million needed to restore the reserve fund, $80 million related to solid waste fees, and $100 million to cover pensions for members of the Los Angeles police and fire departments.
The financial crisis can also be attributed to new labor contracts with police, civic workers and firefighters, which are expected to add another $250 million in costs in FY 2025-26.
He also continued to warn of rising legal payouts. Szabo previously reported $112 million in liability costs, and most recently projected that by the end of FY 2024-25 that expense will increase to $320 million.
In a letter, Bass said she will “deliver fundamental change in the way the city operates.” She directed the CAO to report to her with strategies to “reduce spending significantly while protecting essential services.”
“This year, we must deliver fundamental change in the way the city operates and base our budget on how the city can best serve the people of Los Angeles and to best use their scarce budget dollars,” Bass said in her statement.
According to Bass’ office, downward economic trends mean the city is projected to take in hundreds of millions of dollars less than previously projected. In addition to these trends, costs associated with the recent wildfires are also expected to add to the burden.
The mayor is expected to release her proposed budget April 21.
City News Service contributed to this report.