City of Los Angeles avoids layoffs despite $1 billion deficit

(The Center Square) – Los Angeles Mayor Karen Bass said she successfully concluded talks for labor agreements to avoid layoffs in the 2025-26 budget despite the city’s nearly $1 billion deficit.

“This action protects our skilled workforce and preserves city services,” Bass said in a news release Tuesday.

Union leaders praised the new agreements with the city, in which labor organizations made financial concessions to save jobs.

“Our collaboration landed this historic agreement, and it’s one that we’re extremely proud of,” said David Green, president and executive director of Service Employees International Union Local 721. “Together we’re saving critical frontline positions, boosting revenues through joint efforts with city leadership, and strengthening the vital services Angelenos depend on.”

The city’s original 2025-26 budget included more than 1,600 layoffs, but the balanced budget Bass signed in June restored more than 1,000 positions to ensure services such as pothole repair, traffic management and future housing, according to the Mayor’s Office. The budget reportedly also maintains street repair, parks and library programs, as well as parks’ and libraries’ hours.

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Bass worked with the Office of the City Administrative Officer and the Personnel Department to restore positions, and employees transferred to jobs with the Port of Los Angeles, Los Angeles World Airports and city departments such as water and power.

The city found the money to keep jobs through the new agreements with unions, the Mayor’s Office said. The Los Angeles Police Protective League agreed to its members voluntarily taking overtime as paid time off, for example.

The LA City Coalition of Unions and the Engineers and Architects Association accepted getting five unpaid holidays.

In addition to preventing layoffs, the 2025-26 budget adds more positions in the Los Angeles Fire Department, including more money for paramedics and other resources and support. All Emergency Management Department positions were preserved, along with funding for 911 emergency dispatchers to reduce wait times, according to the Mayor’s Office.

There’s also money for capital infrastructure projects such as planning and coordination at the Los Angeles Convention Center, Sepulveda Basin improvements, and recreation facilities in the San Fernando Valley and South Los Angeles.

The city will continue to fund RepresentLA to provide legal representation to Los Angeles residents.

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