UPDATE: The Los Angeles City Council has just established a new Budget and Finance Advisory Committee to tackle the city’s ongoing budget crisis. This urgent initiative comes on the heels of a $1 billion deficit that threatened city jobs and essential services.
The committee, which convened for the first time on November 24, 2025, marks the beginning of a two-year effort aimed at addressing deeper financial issues within the city. Councilmember Katy Yaroslavsky, chair of the committee, stated that the goal is to shift away from “year-to-year fixes” and to incorporate outside expertise into a comprehensive long-term budget strategy.
Yaroslavsky emphasized the urgency of the situation, saying, “We cannot keep repeating the same budget process every year and expect different results.” She pointed out that the city’s revenue model is failing to meet the demands of a modern metropolis, as rising costs and long-term obligations continue to strain resources.
At the inaugural meeting, former City Controller Ron Galperin was elected chair, with Jessica Lall of CBRE serving as vice chair. The committee also includes notable members such as Gilda Haas, Derric Johnson from United Way, and Joseph Lumarda from Capital Group. “This is an important opportunity to strengthen the city’s financial foundation,” Galperin said, highlighting their focus on sustainable budgeting and improved revenue planning.
Despite successfully closing the $1 billion budget gap over the summer, the city faces ongoing challenges including unpredictable revenues and a reserve fund that hovers near the minimum required by policy. City Administrative Officer Matt Szabo reported that approximately 80% of the city’s spending is dedicated to personnel costs, stressing the need for a more resilient financial strategy.
The newly formed committee is expected to meet roughly once a month, with its next session scheduled for January 12, 2025. Members plan to narrow down a long list of topics into actionable priorities, from asset management to budget process reforms.
Community advocates have welcomed the committee’s formation but are urging members to maintain transparency and public engagement throughout their work. Budget Advocate Lionel Mares expressed hope that the committee will address rising liability costs and ensure job security for city employees. He called for public meetings to enhance accessibility for residents.
As Los Angeles continues to grapple with fiscal challenges, this committee’s work will be vital in shaping the city’s financial future. The urgency of their mission cannot be overstated—how the city balances its budget today will have lasting impacts on services and employment moving forward.
Stay tuned for further updates as the Budget and Finance Advisory Committee embarks on this critical journey for Los Angeles.
