UPDATE: The Los Angeles City Council has just launched a critical initiative to tackle the city’s ongoing financial struggles, forming the new Budget and Finance Advisory Committee in response to a staggering $1 billion budget deficit. The committee convened for its inaugural meeting on November 24, 2025, marking the beginning of a two-year effort to address deep-rooted fiscal challenges.
Councilmember Katy Yaroslavsky, who chairs the committee, emphasized the necessity for sustainable financial strategies, declaring, “We cannot keep repeating the same budget process every year and expect different results.” The advisory group aims to shift from temporary fixes to long-term solutions amidst rising costs and limited revenue growth.
The newly formed committee includes notable figures such as Ron Galperin, former City Controller, elected as chair, and Jessica Lall, managing director at CBRE, serving as vice chair. Other members include community leaders like Gilda Haas, Derric Johnson, and Joseph Lumarda. Galperin stated, “This is an important opportunity to strengthen the city’s financial foundation,” highlighting the committee’s focus on sustainable budgeting and strategic revenue planning.
Despite closing the $1 billion gap this summer through significant budget adjustments, the city faces ongoing structural pressures, including unpredictable revenues and rising liability costs. Matt Szabo, the City Administrative Officer, outlined the current fiscal landscape, noting that approximately 80% of the city’s spending is allocated to personnel. He warned that the city’s reserve fund remains perilously close to its 5% policy minimum, underscoring the need for immediate fiscal reform.
The committee will work in six-month cycles over the next two years, with support from city staff and two graduate fellows from the UCLA Luskin School of Public Affairs. Their efforts will focus on essential areas such as real estate management, transparency improvements, and potential charter reforms. Yaroslavsky urged the committee to provide concrete motions and actionable policy steps rather than vague concepts.
Community advocates welcomed the committee’s formation but stressed the importance of public engagement. Budget Advocate Lionel Mares expressed hopes that the committee would prioritize issues impacting city services and ensure accountability in homelessness spending. He advocated for public meetings to be scheduled during evenings and weekends to enhance community involvement.
Looking ahead, the Budget and Finance Advisory Committee is scheduled to meet again on January 12, 2026. Members are expected to narrow down a broad list of potential topics into actionable priorities, paving the way for a more financially stable Los Angeles.
As this critical initiative unfolds, residents and stakeholders alike are watching closely, hoping for a comprehensive solution to the city’s financial woes. The stakes have never been higher, and the pressure is on for the newly appointed committee to deliver results that will shape the future of Los Angeles.
