UPDATE: The Los Angeles City Council has just launched a critical review of its long-term budget issues, forming a new Budget and Finance Advisory Committee that met for the first time on November 24, 2025. This initiative comes on the heels of the city overcoming a staggering $1 billion budget deficit, highlighting the urgent need for sustainable financial strategies.
The committee, proposed by Councilmember Katy Yaroslavsky, aims to tackle deeper structural challenges in Los Angeles’s finances. Yaroslavsky emphasized that the city cannot continue applying “year-to-year fixes” while facing escalating costs and stagnant revenue growth. “Our revenue model has not kept pace with the needs of a modern city,” she stated, underscoring the necessity for outside expertise in long-term budget planning.
At the committee’s inaugural meeting, Ron Galperin, former Los Angeles City Controller, was elected chair, with Jessica Lall from CBRE as vice chair. The committee also includes notable figures such as Gilda Haas from L.A. Co-op Lab, Derric Johnson from United Way of Greater Los Angeles, and Joseph Lumarda from Capital Group Private Client Services. Galperin noted, “This is an important opportunity to strengthen the city’s financial foundation,” emphasizing the need for long-term solutions.
Despite successfully closing the budget gap earlier this summer, the city remains under pressure from volatile revenues, unexpected spending, and rising liability costs. The $14 billion spending plan previously included significant layoffs that were averted through labor agreements, but City Administrative Officer Matt Szabo warned that the reserve fund is precariously close to its 5% policy minimum, a threshold he argues should be closer to 10% for economic resilience.
Looking ahead, the Budget and Finance Advisory Committee will work over the next two years in six-month cycles, aiming to produce actionable recommendations. Their next meeting is scheduled for January 12, 2025. Yaroslavsky instructed the committee to focus on concrete motions that address structural issues, including potential charter reforms and improved public engagement.
Community voices are rallying around this initiative, with Budget Advocate Lionel Mares urging the committee to prioritize transparency and accountability in city spending. He emphasized the need to address soaring liability costs that threaten essential city services and to conduct public meetings at accessible times for residents.
As this committee embarks on its mission, it faces the critical task of navigating through the complexities of Los Angeles’s financial landscape, ensuring that the city can achieve fiscal stability and effectively serve its residents. The urgency of their work cannot be overstated, as the solutions they propose will have lasting impacts on the community.
For continuous updates on this developing story, stay tuned as the Budget and Finance Advisory Committee sets out to reshape Los Angeles’s financial future.
