Los Angeles County Proposed Budget Outlines ‘Sobering’ Challenges

Los Angeles County is in the early stages of the 2024-2025 fiscal year budget approval process, with officials trying to navigate significant revenue shortfalls and what was described as “sobering” budget challenges.

The county Board of Supervisors got its first look Tuesday at CEO Fesia Davenport’s recommended $45.4 billion budget this week, during the board’s regular meeting. In a presentation, Davenport highlighted an overall reduction of $1.4 billion from the previous year’s budget, which does not account for previously allocated unspent funds or any additional revenues. Final figures could change as the budget process continues.

Davenport also noted that county departments had requested a collective $1.9 billion, $833 million of which was deferred to future budget phases and $1.1 billion of which would remain unmet needs.

“While the budget allows for growth in some critical areas, the economic outlook remains challenging,” Davenport said in comments to the board.

The county remains committed — especially from a financial standpoint — to reducing homelessness, with $728.2 million proposed for housing and assistance programs. Similarly, officials noted the commitment to mental health support services through $300.6 million in funding for the Care First, Jails Last initiative. Officials also increased Department of Mental Health staffing by 452 positions.

Davenport highlighted the complexities of coordinating these types of programs and services across local governments and service providers. She said another layer of complexity is added as funding changes and new requirements from the state materialize.

New tools and technologies could be needed to manage these efforts more efficiently.

Though Davenport’s presentation to the board did not directly address technology, the budget outlined funding in two key areas — cybersecurity and election technology. More than $6.1 million would be allocated for defense of the county’s information technology infrastructure, while another $9 million would be set aside for the Department of the Registrar-Recorder/County Clerk’s Voting Solutions for All People (VSAP) system. That system is expected to require an additional $27 million in funding in the coming years, according to budget documents.

The transmittal letter which traditionally accompanies the budget said efforts to replace and modernize legacy systems are unfunded by more than $450 million.

Some of the looming challenges facing the budgeting process include uncertainty in the real estate market (property tax makes up around 20 percent of county revenues); budget deficits across multiple departments; possible litigation and settlement costs associated with Child Victims Act claims; and the deepening homelessness crisis, among others.

At this stage, the proposed budget is far from set in stone. A public hearing is set for May 15, board deliberations are set for June 24, and final approval is expected Oct. 8.