Mayor Garcetti’s Proposed 2022-2023 City of LA Budget



Overview of the Proposed Budget

The FY 2022-2023 total budget is $11,765,134,959.

PROPOSED INCREASES
• LAPD’s budget +$125M to $3.2B
• Homelessness +$361M to $1.2B

PROPOSED DECREASES
• Housing -$34M to $214M
• Transportation -$14M to $329M
• Recs & Parks -$96M to $377M


Unrestricted Revenues

The City of LA’s budget for Unrestricted Revenues is $6.17B. Unrestricted Revenues are funds that can literally be spent on anything (unrestricted/discretionary spending). Police (LAPD) take close to HALF of our unrestricted revenues at $2.835B or 46%


Homelessness Budget

Mayor Garcetti is proposing $1,163,077,204 for the homelessness budget. Below is a breakdown of the homelessness budget:

• $71M for Encampment Sweeps
• $8M for LAPD
• $32M for Los Angeles Homeless Services Authority (LAHSA)
• $415M for Prop HHH Permanent Supportive Housing
• $130M for Homekey Permanent Supportive Housing
• $255M for Homekey Round 2


LAPD Budget

People often ask us where to find the total cost of the LAPD budget. A cursory Google search might lead you to believe that the LAPD budget is $1.9 billion, but that’s because the press often uses just the operating cost instead of the full LAPD budget.

To find the total proposed budget ($3,195,836,138) go to page 171 of the PDF (page 153 of the book) https://cao.lacity.org/budget22-23/2022-23Proposed_Budget.pdf

The City does not make this number easy to find!


Budget Process

  • The City’s fiscal year is from July 1 through June 30.
  • The Charter requires that departments submit budget requests to the Mayor by January 1.
  • The Charter requires the City Council, by majority vote, to adopt or modify the Proposed Budget by June 1.
  • Once the City Council has acted, the Mayor has five working days to approve or veto any changes that the City Council made to the Proposed Budget. 
  • Once the Mayor has acted, the City Council has five working days to sustain or override by two-thirds vote the Mayor’s actions.
  • The result of this entire process is the adopted budget for the next fiscal year.

Budget Presentation

The Mayor presents the complete Proposed Budget in four budget books: Budget Summary, Proposed Budget Book, Detail of Departmental Programs (Blue Book), and Revenue Outlook.

  • Budget Summary – The Mayor’s Budget Summary provides the reader with highlights and general information concerning the Proposed Budget.
  • Proposed Budget Book – The Proposed Budget Book contains technical information concerning departments and special funds.
  • Detail of Departmental Programs (Blue Book Vol 1 and Vol 2) – The Detail of Departmental Programs, also known as the Blue Book, provides detailed explanations of year-over-year proposed changes to the City’s annual budget base.
  • Revenue Outlook – The Revenue Outlook provides an overview of the revenue anticipated

Budget Adjustments

  • The City can adjust spending authority throughout the fiscal year to address changes in revenue or expenditure projections or other unanticipated occurrences.
  • To assist the Mayor and City Council in their consideration of interim budget adjustments, the CAO prepares financial status reports throughout the year that provide information on the condition of the City’s finances.
  • The CAO typically issues four financial status reports each year, with the last report serving as the year-end report for the fiscal year.

Fund Structure

GENERAL FUND: the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in other funds.

General Fund revenues are derived from such sources as taxes, licenses, permits, fees, fines, intergovernmental revenues, charges for services, special assessments, interest income, and other resources available for discretionary funding.

RESERVE FUND: an account in which unrestricted cash is set aside outside the budget for unforeseen expenditures and emergencies.

SPECIAL FUNDS are used to account for revenues derived from specific taxes, fees, governmental grants, or other revenue sources that are designated to finance particular functions and activities of the City.

  • EXAMPLE – The Special Parking Revenue Fund accounts for all monies collected from parking meters in the City except those located in established vehicle parking districts for operations of meters in the City.

BUDGET STABILIZATION FUND establishes a method to prevent overspending during prosperous years and to provide resources to help maintain service levels during lean years.

  • This Fund is comprised of excess revenue from seven economy-sensitive taxes, Property Tax, Utilities Users’ Tax, Business Tax, Sales Tax, Transient Occupancy Tax, Documentary Tax, and Parking Users’ Tax.

Source:

Download the Mayor’s budget at cao.lacity.org/budget

For questions related to the budget, email jane@mejiaforcontroller.com