As fate would have it, the very destructive and deadly wildfires that swept through Los Angeles neighborhoods this year erupted as its city officials were struggling to close a large gap in their budget.
At the time, the city’s deficit was estimated to be $600 million, but this month it was updated to nearly $1 billion.
It would be tempting to attribute the larger shortfall to the fires, and they undoubtedly are a factor. But City Controller Kenneth Mejia has repeatedly warned Mayor Karen Bass and city council members that the city was overspending vis-à-vis revenues, creating a growing structural deficit.
From his first warnings in 2023, Mejia consistently warned city officials and the public about “financial trouble including less-than-expected revenues, increased liability payouts, and increased payroll costs and the effects this has had on the city’s budget, departments, and services,” his office said in a news release last week.
