UN4LA News - April 2025
A monthly newsletter published by United Neighborhoods for Los Angeles.
UN4LA's mission is to bring communities together to plan for a sustainable future. Growth must be shaped by community engagement, not developer dollars.
CITY OF L.A. FACES MAJOR BUDGET CRISIS
The depth of the City of LA's budget crisis became frighteningly clear in mid-March, when City Administrative Officer Matt Szabo reported that the shortfall is nearing $1 billion. While there are many reasons for the crisis, including ballooning payouts for lawsuits and declining revenues, one important factor was the approval by the Mayor and City Council of raises for both LAPD and other city employees, which added about $250 million to the shortfall. Szabo warned that the City will have to consider laying
off a substantial number of employees, possibly numbering in the thousands. On top of that, Szabo said, the city needs to put hundreds of millions into its reserve fund, which was drained in an attempt to balance the current budget.
L.A. City Budget Shortfall Grows to Nearly $1 Billion, with Layoffs ‘Nearly Inevitable’
L.A. CITY COUNCIL CONSIDERS MULTI-YEAR BUDGETING FOR GREATER FISCAL STABILITY
After years of financial instability brought on, in part, by a lack of long-term fiscal planning, in March the LA City Council voted to consider adopting a two-year budget cycle. This is a step that many financial watchdogs, including Controller Kenneth Mejia, have been advocating for years. Proponents argue that moving to a two-year budget will force the Mayor and City Council to engage in long-term planning when considering employee salaries, infrastructure and city services.
Especially important, the motion by Councilmembers Eunisses Hernandez and Bob Blumenfield asks the City to investiagate "strategies for encouraging public participation in the annual budget process". This would not only give the public a voice in setting the city's budget priorities, but could promote transparancy in the budget process, something that has been sorely lacking in recent years.
Budget & Finance Committee Report
Original Motion by Eunisses Hernandez and Bob Blumenfield
AUDIT SHOWS CITY OF L.A. CAN'T ACCOUNT FOR MUCH OF ITS SPENDING ON HOMELESSNESS
After a scathing audit showed that the City of LA can't account for much of the money it has spent on programs for the homeless, Federal Judge David O. Carter threatened to intervene if the City failed to quickly address the problem. The audit of the LA Homeless Services Authority (LAHSA) showed that the agency was largely unable to track over $2 billion that had been allocated to various non-profits that provide services to the homeless, and had failed to document progress and outcomes.
Carter also had harsh words for LA Mayor Karen Bass, who has refused to allow City Controller Kenneth Mejia to audit her Inside Safe program. Bass and the LA City Attorney claim that the City Charter prohibits the Controller from performing a audit of the program, even though Charter Section 261, Powers and Duties, clearly states:
"The Controller shall [....] in compliance with generally accepted government auditing standards, audit all departments and offices of the City, including proprietary departments, where any City funds are either received or expended; be entitled to obtain access to all records and personnel, including from City contractors and subcontractors that are either expending or receiving City funds, in order to carry out this function; [....] and promptly provide completed audit reports to the Mayor, Council, and City Attorney and make those reports available to the public [....] [Emphasis added.]
Judge Blasts LA Homeless Spending as a ‘Train Wreck’ and Threatens to Seize Control
L.A. COUNTY SUPERVISORS VOTE TO CUT FUNDING TO L.A.H.S.A.
In spite of last-minute please by LA City elected officials, on April 1 the LA County Board of Supervisors voted to cut more than $300 million in funding for the Los Angeles Homeless Services Authority (LAHSA). The decision was sparked, in part, by a pair of scathing audits that found the agency had not kept track of money spent on services for the homeless. LAHSA is a joint powers authority formed in the 90s by the City of LA and the County of LA to address what many felt were unacceptable failures in serving the homeless population. With this vote, the County Board of Supervisors has chosen to create its own homeless services agency. It's unclear at this point how the City of LA will respond.
LA County to Strip Hundreds of Millions of Taxpayer Dollars from Homelessness Agency
L.A. CITY COUNCIL SEEKS TO CREATE NEW BUEREAU TO OVERSEE HOMELESS SPENDING
As LA City Hall faces increasing criticism for failing to track spending on homelessness, the LA City Council voted on March 19 to pursue the creation of a bureau that would collect data and report on outcomes. The motion from Councilmember Nithya Raman instructs the Chief Legislative Analyst, the City Administrative Officer and the LA Housing Department "to report to Council within 30 days on the resources and staffing plan necessary to stand up a Bureau" within the Housing Department. According to the motion, since December the city has been working with a consultant to gather performance data on its homeless services, which has already helped to "identify and address challenges in program implementation, make real improvements in its performance, and help more people experiencing homelessness get the care and support they need."
Report from Housing & Homelessness Committee
TIME EXTENSIONS FOR HIGH-VALUE PROJECTS IN THE CITY OF L.A., DENIAL OF APPEALS
Claiming to increase transparency in the approval process for project applications, the LA City Council is considering an ordinance that would limit the number of time extensions allowed before the Council acts on applications for "high value" projects, and also allow the Council to deny CEQA appeals without ever having held a hearing. The Council has used this tactic in the past by informing appellants that their appeal was "deemed denied" because the City failed to schedule a hearing, and the courts have told the City more than once that this practice is illegal. In Leichtberg v. City of LA, the trial court stated that "Having established a system of appeals, the City is bound to comply with the applicable Charter provisions [...]" Leave it to the LA City Council to claim they're increasing transparancy by depriving citizens of their right to appeal.
Draft Ordinance, Council File: 22-0736
L.A. CITY COUNCIL CONSIDERS REVISIONS TO HOME SHARING ORDINANCE
On March 18, the LA City Council voted to explore revisions to the Home Sharing Ordinance, which governs short-term rentals. Concerned about the possible loss of rental housing stock and allegations of lax regulation, the Council instructed City departments to report back on the possibility of creating a single office dedicated to enforcement of the ordinance. The City's Housing Department estimates the number of illegal home sharing violators to be around 7,500. The Council is also considering requiring on-site inspections and implementing electronic verification to ensure that businesses aren't illegally exploiting the system.
Report from LA Housing Department on Increased Enforcement of Home Sharing Ordinance
STATE RELEASES UPDATED FIRE ZONE MAPS
Cal Fire has released its updated maps for Fire Hazard Severity Zones (FHSZs) within California. Not surprisingly, the amount of land designated as “High” or “Very High” hazard has increased dramatically over the last decade. As California grows drier and hotter due to climate change, and as our fire season grows longer, it's increasingly important for citizens and elected officials to have accurate information about where fire risk is highest.
New Fire Maps Put Nearly 4 Million Californians in Hazardous Zones
Find your Fire Hazard Severity Zone (FHSZ)
