UPDATE: The Los Angeles City Council has just launched a critical Budget and Finance Advisory Committee to tackle severe financial issues facing the city. This urgent initiative comes in response to a staggering $1 billion budget deficit that threatened city jobs and services just months ago.
The committee, led by Councilmember Katy Yaroslavsky, convened for its inaugural meeting on November 24, 2025. Yaroslavsky emphasized the need to shift from temporary solutions to sustainable fiscal strategies. “We cannot keep repeating the same budget process every year and expect different results,” she stated.
The committee is made up of five experts, including former City Controller Ron Galperin as chair and Jessica Lall, managing director at CBRE, as vice chair. Other members include Gilda Haas, Derric Johnson from United Way, and Joseph Lumarda from Capital Group. Their collective goal is to strengthen the city’s financial future through innovative budgeting practices.
Despite closing the budget gap this summer, the city still grapples with ongoing financial pressures, including unpredictable revenues and rising costs. City Administrative Officer Matt Szabo warned that the reserve fund is perilously close to the 5% minimum mandated by city policy, which he argues should be increased to at least 10% for better economic stability.
The Budget and Finance Advisory Committee will operate through a two-year plan, meeting monthly and providing regular updates. The next meeting is scheduled for January 12, 2025. This panel aims to delve into long-term solutions such as optimizing city assets and enhancing transparency in budgeting processes.
Local residents and advocates are keenly watching this development. Budget Advocate Lionel Mares has urged the committee to prioritize public engagement and transparency, advocating for evening and weekend meetings to accommodate more community voices. The public will be looking for accountability as the committee begins to outline concrete policy changes.
The formation of this advisory group signals a pivotal moment for Los Angeles as it seeks to navigate its financial challenges. The city is not just tackling a budget deficit; it is laying the groundwork for a more resilient fiscal future. As the committee embarks on its important work, all eyes will be on the outcomes of its recommendations and their potential to reshape the financial landscape of Los Angeles.
For ongoing updates and insights, stay tuned as this story develops.
