URGENT UPDATE: The Los Angeles City Council has officially launched a new Budget and Finance Advisory Committee to tackle critical long-term budget challenges, following a recent $1 billion deficit closure. The committee convened for its inaugural meeting on November 24, 2025, as city officials aim to create sustainable financial solutions amid ongoing fiscal pressures.
City Councilmember Katy Yaroslavsky, who spearheaded the initiative, emphasized the need for expert guidance in addressing the city’s financial woes. “We cannot keep repeating the same budget process every year and expect different results,” Yaroslavsky stated. The committee, which consists of five members, is poised to work over the next two years to address the root causes of the city’s fiscal instability.
Former City Controller Ron Galperin was elected chair, with Jessica Lall as vice chair. They will lead a team that includes key figures like Gilda Haas, Derric Johnson, and Joseph Lumarda. “This is an important opportunity to strengthen the city’s financial foundation,” Galperin remarked, highlighting a focus on sustainable budgeting and improved revenue planning.
Despite the recent budget adjustments that averted mass layoffs, the city continues to face serious challenges. City Administrative Officer Matt Szabo warned that the reserve fund is dangerously close to its 5% minimum requirement, which he argues should be raised to 10% to better weather economic downturns.
The committee’s agenda includes examining how the city manages its real estate and liabilities, with a keen eye on increasing transparency and public engagement. Yaroslavsky reiterated the importance of moving beyond temporary fixes, stating that “our revenue model has not kept pace with the needs of a modern city.”
Next, the committee is expected to refine its priorities over the coming months, with its next meeting scheduled for January 12. This ongoing dialogue will also include input from community advocates, who are urging the committee to remain accessible to residents. Budget Advocate Lionel Mares expressed hope for increased public meetings to enhance community involvement.
As Los Angeles grapples with volatile revenues and rising costs, the outcome of this committee’s work is critical. With a forecast indicating a potential $91 million gap next fiscal year, urgent action is needed to stabilize the city’s finances.
Stay tuned for more developments as the Budget and Finance Advisory Committee embarks on its mission to secure Los Angeles’ financial future.
