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LA WATCHDOG - This week, Mayor Bass has received kudos for being the “closer” of the labor agreements between the Los Angeles Unified School District and the three unions that represented 70,000 workers.
On April 20th, Mayor Bass will once more be in the spotlight when she submits her Proposed 2026-27 Budget to the City Council for its consideration.
The common thread is that both LAUSD and the City have Structural Deficits and billions in deferred maintenance and unfunded pension and other retirement liabilities. Neither has engaged in any meaningful budget, financial, or organizational reform. And neither can deliver adequate services to its 400,000 students and 4 million Angelenos.
Unfortunately, the new labor agreements with the LAUSD’s union come with an annual cost of $1.2 billion. This give-the-store-away agreement will blow a massive hole in its budget, requiring the District to go begging to the State to fund the deficit or implement layoffs.
More than likely, LAUSD will place a tax raising measure on the November ballot, like the parcel tax designed to raise $500 million that was needed to fund the 2019 unsustainable labor agreement. As an aside, voters rejected the measure.
The Mayor’s Proposed Budget is theoretically balanced, but only after closing a $250-300 million deficit caused by budget busting labor agreements. And this budget does not include adequate funding for the repair and maintenance of our deteriorating streets, sidewalks, parks, and street lights. Nor are there sufficient funds for public safety, including money for black and white police patrol cars or the repair of firefighting equipment sitting in the LAFD boneyard.
The Mayor will balance her budget through layoffs or furloughs and the continuing rollback of basic services. The City has also placed three hail Mary tax raising measures on the June primary ballot which, if approved by the voters, will raise more than $100 million.
The City is also considering four more hail Mary tax raising measures on the November ballot, which, if approved by the voters, will raise more than $400 million.
Will voters approve a LAUSD tax measure? Will LAUSD take the necessary actions to rationalize its bloated organization that has gone from serving over 700,000 students to under 400,000 students? Will LAUSD be open and transparent when it develops its annual budget and a long range financial plan and agree not to enter into budget busting labor agreements?
Will the City reform its budget process now that the Mayor’s Charter Reform Commission has failed to make recommendations to eliminate the City’s Structural Deficit? Will the City support open and transparent labor negotiations and agree not to enter into any labor agreement that creates a deficit? Will the City agree to independent oversight of its budget and finances in real time?
Mayor Bass is up for reelection. Will she support reform for LAUSD and the City? Or will she continue her fiscally irresponsible ways and continue to kick the can down the road? Does Bass deserve another four years? Her Proposed Budget may provide some answers.
(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].)
