Proposed FY2024-25 Budget Highlights:
Unrestricted Revenues:
The City of LA's budget for Unrestricted Revenues is $6.8B. Unrestricted Revenues are discretionary funds that can be spent on anything.
Liability Claims:
The Mayor's Proposed Budget estimates record level Liability Payouts for the current fiscal year at $247,412,000. However, the proposed budget for Liability Claims for next fiscal year is only $87,370,072.
Liability Claims are one of the main reasons why we're in a Budget Deficit and why many City Departments are getting defunded & positions cut.
| FY2024-25 BUDGET MEMOS | ||
|---|---|---|
| TITLE | DATE | CAO RECOMMENDATION |
Budget Process
- • The City’s fiscal year is from July 1 through June 30.
- • The Charter requires that departments submit budget requests to the Mayor by January 1.
- • The Mayor releases her proposed budget on April 20th which will then fall into the hands of the City’s Budget, Finance, and Innovation (BFI) Committee who will make recommendations on the proposed budget.
- • The Charter requires the City Council, by majority vote, to adopt or modify the Proposed Budget by June 1.
- • Once the City Council has acted, the Mayor has five working days to approve or veto any changes that the City Council made to the Proposed Budget.
- • Once the Mayor has acted, the City Council has five working days to sustain or override by two-thirds vote the Mayor’s actions.
- • The result of this entire process is the adopted budget for the next fiscal year.
Budget Hearings
Budget, Finance & Innovation Committee Hearings:
- • Tuesday – April 30, 2024 - 1:00 p.m.
- • Wednesday – May 1, 2024 - 1:00 p.m.
- • Thursday – May 2, 2024 - 9:00 a.m.
- • Friday – May 3, 2024 - 1:00 p.m.
- • Monday – May 6, 2024 - 9:00 a.m.
- • Wednesday – May 8, 2024 - 1:00 p.m.
Public Comment IN-PERSON ONLY on May 1st.
John Ferraro Council Chamber
Room 340, City Hall
200 N Spring St., Los Angeles, CA 90012
See complete Budget, Finance & Innovation Committee Hearing schedule.
Full City Council Hearings:
- • Wednesday – May 22, 2024 - 10:00 a.m.
- • Thursday – May 23, 2024 - 9:00 a.m.
Public Comment
Written Public Comment:
- • To submit your written comment on the budget, visit: LACouncilComment.com
- • The Council File Number is 24-0600
In-Person Public Comment:
- • May 1st is the only opportunity to give public comment during the committee budget hearings.
- • The public will also have an opportunity to give public comment to the full City Council on May 22nd at 10:00 a.m.
- • Members of the public can enter City Hall through the public entrance at 200 N Main St. After going through security, go up the elevator to the third floor to Room 340 (Council Chambers).
- • Sign up to speak at the kiosk located at the entrance.
- • Wait for your name to be called during public comment.
Budget Presentation
The Mayor presents the complete Proposed Budget in four budget books: Budget Summary, Proposed Budget Book, Detail of Departmental Programs (Blue Book), and Revenue Outlook.
- • Budget Summary – The Mayor’s Budget Summary provides the reader with highlights and general information concerning the Proposed Budget.
- • Proposed Budget Book – The Proposed Budget Book contains technical information concerning departments and special funds.
- • Detail of Departmental Programs (Blue Book Vol 1 and Vol 2) – The Detail of Departmental Programs, also known as the Blue Book, provides detailed explanations of year-over-year proposed changes to the City’s annual budget base.
- • Revenue Outlook – The Revenue Outlook provides an overview of the revenue anticipated
Budget Adjustments
- • The City can adjust spending authority throughout the fiscal year to address changes in revenue or expenditure projections or other unanticipated occurrences.
- • To assist the Mayor and City Council in their consideration of interim budget adjustments, the CAO prepares financial status reports throughout the year that provide information on the condition of the City’s finances.
- • The CAO typically issues four financial status reports each year, with the last report serving as the year-end report for the fiscal year.
GLOSSARY:
GENERAL FUND: The primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in other funds. General Fund revenues are derived from such sources as taxes, licenses, permits, fees, fines, intergovernmental revenues, charges for services, special assessments, interest income, and other resources available for discretionary funding.
RESERVE FUND: An account in which unrestricted cash is set aside outside the budget for unforeseen expenditures and emergencies.
SPECIAL FUNDS (OTHER SPECIAL PURPOSE FUNDS): Are used to account for revenues derived from specific taxes, fees, governmental grants, or other revenue sources that are designated to finance particular functions and activities of the City.
• EXAMPLE – The Special Parking Revenue Fund accounts for all monies collected from parking meters in the City except those located in established vehicle parking districts for operations of meters in the City.
BUDGET STABILIZATION FUND: Establishes a method to prevent overspending during prosperous years and to provide resources to help maintain service levels during lean years.
• This Fund is comprised of excess revenue from seven economy-sensitive taxes, Property Tax, Utilities Users’ Tax, Business Tax, Sales Tax, Transient Occupancy Tax, Documentary Tax, and Parking Users’ Tax.
UNRESTRICTED REVENUES: Revenues that the City can use for any general expenditure. All unrestricted revenues come from the General Fund. Certain General Fund receipts resulting from fees imposed on various city services, however, are “restricted” in the sense that the funds collected are used to offset the cost of the service provided.