---

 [ LOS ANGELES ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=312)

#  Exclusive Interview: Kenneth Mejia Warns Los Angeles Is Running Out of Money—and Time

Written by Mihran Kalaydjian.

 ![](https://mail.citywatchla.com/images/stories/Mar-2026/025b.jpg)

March 30 2026

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

 [Comments](#disqus_thread)

THE BOTTOM LINE - Los Angeles is no longer drifting toward a financial crisis it is already in one.

For years, City Hall has relied on optimistic projections, internal workarounds, and political messaging to mask a deeper problem. But the numbers are now catching up. What was once manageable is now structural and it is beginning to impact the services residents rely on every day.

In an exclusive interview on The Bottom Line, Los Angeles City Controller Kenneth Mejia delivered a warning that cuts through the noise: this is not a temporary imbalance—it is a system that has been allowed to operate without real accountability.

**A Crisis Built by Design, Not Accident**

At the center of the problem is a pattern that has repeated itself for years: Los Angeles budgets for revenues that never arrive, then spends as if they will.

When the shortfalls hit as they consistently do the city is forced into reactive decisions: hiring freezes, service cuts, and last-minute financial maneuvers that weaken the systems residents depend on.

Departments continue to overspend with limited consequences. This is no longer poor planning it is a normalized failure of governance.

Then there is the cost few want to confront directly: liability payouts.

Over the past two years, Los Angeles has paid out more than $1 billion in lawsuits and claims, with the Los Angeles Police Department among the leading drivers. That level of exposure is not just costly it is unsustainable.

At some point, this stops being mismanagement and becomes institutional failure.

**The Three Forces Driving the Breakdown**

According to Mejia, the city’s financial instability comes down to three core forces:

\- Exploding liability costs
\- Departmental overspending without accountability
\- Revenue projections that repeatedly fall short

Individually, each would strain a city’s finances. Together, they are pushing Los Angeles toward long-term instability.

**Billions Spent But Where Is the Accountability?**

Nowhere is the disconnect more visible than in public safety spending.

Los Angeles now allocates more than $3.4 billion annually to policing, yet many residents still report slow response times and limited visibility in their neighborhoods.

**That raises a fundamental question:**

What are taxpayers actually getting for their money?

Audits have already revealed inefficiencies. Meanwhile, every additional dollar directed toward one department comes at a cost to another.

If spending continues to rise without measurable outcomes, the city will be forced to make increasingly difficult tradeoffs cutting basic services to sustain escalating budgets.

**Homelessness Spending: High Dollars, Weak Oversight**

Homelessness remains the city’s most urgent humanitarian crisis and one of its most expensive.

Los Angeles budgets roughly $1 billion annually, yet actual spending is closer to half that amount.

**Audits have uncovered troubling issues:**

\- Underutilized shelter capacity
\- Weak data tracking and reporting
\- Lack of accountability for service providers
\- Confirmed cases of fraud

For a crisis of this scale, these are not minor inefficiencies they are systemic breakdowns.

**Transparency Meets Resistance**

Efforts to increase oversight have revealed another challenge: resistance from within City Hall itself.

Legal disputes over audit authority, combined with limited staffing resources, have slowed efforts to fully examine how taxpayer dollars are being spent.

Still, there are signs of movement. But transparency alone is not enough.

Without action, transparency becomes documentation not reform.

**The Bottom Line**

Los Angeles does not just have a budget problem it has an accountability crisis.

For too long, City Hall has operated on assumptions that do not hold, spending patterns that are not sustainable, and oversight that is too often resisted.

If nothing changes, the consequences are clear:

\- Residents will pay more while receiving less.
\- Services will continue to decline.
\- And the system will become harder and more expensive to fix.

**The warning signs are no longer subtle.**

**Los Angeles is not just running out of money. It is running out of time.**

*(Mihran Kalaydjian is a seasoned public affairs and government relations professional with more than twenty years of experience in legislative affairs, public policy, community relations, and strategic communications. A respected civic leader and education advocate, he has spearheaded numerous academic and community initiatives, shaping dialogue and driving reform in local and regional political forums. His career reflects a steadfast commitment to transparency, accountability, and public service across Los Angeles and beyond.)*

[![](https://mail.citywatchla.com/images/ME%20DENTAL%20SPA/me%20dental%202026%20final.jpg)](http://medentalspa.com/)

 ![](https://mail.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Last Name

 [ ![LA DWP #2 (Pay Your Bill Help)](https://mail.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://mail.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 [ ![Home - HHR Rent is too High - SB-2](https://mail.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://mail.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2")

 ---

##  Featured CityWatch Stories

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/fd/064h-fdb0b507.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12)

### [Remembering Ken Draper: CityWatch and Transparency Are his Legacy](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12)

LA WATCHDOG - Ken Draper, the editor and publisher of CityWatch for more than 20 years, passed away on August 8, 2022…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/0f/061a-0f1ada2f.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398)

### [Brace Yourself For A Worse Housing Crisis](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398)

PLANNING WATCH - The California State Legislature will soon vote on the following draft legislation. Please carefully…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/54/064j-54f0ecbd.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9)

### [Be Prepared to Protect Our Democracy in November From a Trumpian Plot](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9)

BE AWARE - Back in the days when conservatives were so hungry for media platforms that they’d come on progressive shows…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/ab/063e-ab3b1ba1.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396)

### [Nithya Raman Loses the Homelessness Gavel — Her Record Explains Why](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396)

THE BOTTOM LINE - Raman wants Los Angeles voters to promote her to mayor. Before handing her the keys to City Hall, v…

 [ ![](https://mail.citywatchla.com/media/yootheme/cache/75/064a-75d5dbb3.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425)

### [Your Boss Owns Your Workday—Not Your Brain](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425)

THE NEURAL WORKPLACE - California must protect workers before workplace surveillance crosses the final frontier: the hu…

---

##  [ LOS ANGELES ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/064n.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33207:how-los-angeles-homeowners-can-use-home-equity-to-finance-major-home-improvements&catid=312)### [How Los Angeles Homeowners Can Use Home Equity to Finance Major Home Improvements](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33207:how-los-angeles-homeowners-can-use-home-equity-to-finance-major-home-improvements&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/063j.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33170:will-the-mayor-city-council-and-school-board-find-boldness-to-convert-empty-schools&catid=312)### [Will the Mayor, City Council and School Board Find Boldness to Convert Empty Schools?](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33170:will-the-mayor-city-council-and-school-board-find-boldness-to-convert-empty-schools&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/062g.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33166:la-county-executive-job-candidates-new-and-old-sincere-and-opportunistic-are-lining-up&catid=312)### [LA County Executive Job: Candidates New and Old, Sincere and Opportunistic, are Lining Up](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33166:la-county-executive-job-candidates-new-and-old-sincere-and-opportunistic-are-lining-up&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/062n.png) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33169:shame-on-da-nathan-hochman-the-prosecution-of-lapd-officer-daniel-flores&catid=312)### [Shame on DA Nathan Hochman: The Prosecution of LAPD Officer Daniel Flores](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33169:shame-on-da-nathan-hochman-the-prosecution-of-lapd-officer-daniel-flores&catid=312)

 [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/061k.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33147:boyle-heights-warehouse-fire-lessons-learned&catid=312)### [Boyle Heights Warehouse Fire: Lessons Learned](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33147:boyle-heights-warehouse-fire-lessons-learned&catid=312)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>