NC Budget Advocates Report

Los Angeles Budget Advocates Report

REVENUE UPDATE

Through October, revenues were approximately $120 million above plan, largely due to one-time transfers from special funds and higher utility users’ taxes. However, no year-end surplus is anticipated due to slower economic growth and lower-than-expected property and hotel tax revenues.

FY 2026–27 BUDGET OUTLOOK

Looking ahead to FY 2026–27, the City faces a projected $300–$400 million budget gap, beginning with a $90 million structural deficit. Pressures include escalating legal judgments and settlements, the need to replenish reserves, rising Police Department labor costs, a new police labor agreement, and the potential loss of Federal and State funding for homelessness programs.

PROPOSED TAX MEASURES

The City Council is considering placing two measures on the June primary ballot to increase hotel and parking occupancy taxes, which could generate approximately $125 million annually. In addition, a November ballot measure may propose increasing the sales tax by one-half cent, raising the rate to 10¼%.

CHARTER REFORM

Despite the City’s growing fiscal challenges, the Charter Reform Commission has not advanced meaningful budget or fiscal reform proposals.

WHO ARE THE BUDGET ADVOCATES

The Neighborhood Council Budget Advocates receive no City funding. Supported by Neighborhood Councils, they host Budget Day at City Hall, hold public town halls, and meet annually with City department heads and budget analysts to advocate for transparency, accountability, and fiscal sustainability.

Neighborhood Council Funding Survey

Neighborhood Councils are encouraged to take this survey. It asks about how the reduction in NC funding has effected how you operate and spend your funds.

Budget Cut Survey

REQUEST FOR SUPPORT

Neighborhood Councils are encouraged to agendize and approve an allocation of $500 or more to support Budget Day at City Hall.

BUDGET ADVOCATE PARTICIPATION

Each Neighborhood Council is encouraged to appoint two Budget Representatives. Representatives may be Board members, former Board members, or stakeholders.

CONTACT

To connect with the Budget Advocates or learn how to participate, email: [email protected]

For more information, visit www.BudgetAdvocates.org