LA WATCHDOG - Shall the City Charter be amended to increase the minimum budget allocated to the Department of Recreation and Parks, phased in over ten years until it is double the current minimum budget allocation, with exceptions for fiscal emergencies?
The City Council has placed on the November ballot a measure that, if approved by the voters, will increase the charter mandated funding for the Department of Recreation and Parks to a level where it will be able to properly maintain our 16,000 acres of parks, operate its numerous programs, and start to address its deferred maintenance budget of at least $2.6 billion. There is, however, an unfortunate loophole.
This will not require an increase in our taxes.
Prior to 2011, the Charter mandated funding for the Department was equal to 0.0325% of the Assessed Value of the City’s properties. Beginning in 2011, Rec & Parks, unlike all but one other city department (the Library), would be subject to the newly implemented “full cost recovery” program where the Department would be responsible for its “Related and Indirect Costs.” These include pension and other retirement costs, human resources benefits (healthcare), and a variety of other costs.
When the “full cost recovery” program was initiated, we were told by the Mayor and City Administrative Officer that these diverted funds would be restored when General Fund revenues recovered. Since that time, revenues have more than doubled. On the other hand, diverted funds have increased from $38 million, representing 26% of charter mandated revenue, to $149 million, 48% of charter mandated revenue of $308 million.
After adjusting for the diverted funds, the new revenue for the department has increased from $140 million in 2010 to $160 million this year. When adjusted for inflation, real purchasing power has declined by 25%.
Overall, $1.4 billion has been skimmed by City Hall. No wonder there is a deferred maintenance of at least $2.6 billion.
Going forward, the increased mandated funding less the diverted funds will increase to over $750 million in ten years. More than likely, however, the net revenue may be decreased by $300 million because the City has the ability, according to ballot measure, to reduce the charter mandated transfer by 30% if the City declares a financial emergency. In June of 2025, the City declared such an emergency because of overspending, budget busting labor agreements, lower than expected revenues, and higher than expected liability claims.
The Charter Reform Commission recommended doubling the charter mandated funding. But the CAO and City Council added the financial emergency clause because the City does not have the financial flexibility to adequately fund our Department of Recreation and Parks, one of the City’s crown jewels that benefits all Angelenos, especially those living in small, overcrowded apartments.
Vote Yes on Charter Amendment PRK, even though the City Council has provided a way to continue to short change Rec & Parks.
(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].)
