Mayor Garcetti’s Proposed 2021-2022 City of LA Budget

Overview of the Proposed Budget

The FY 2021-2022 total budget is $11,230,298,313. Mayor Garcetti has proposed an increase to LAPD over this year’s current budget with a total of $3,078,227,589. Other agencies have also seen slight increases.


Unrestricted Revenues

In Mayor Garcetti’s proposed FY2021-22 budget, he is giving the LAPD 46% of the city’s total budget for unrestricted revenues.

Emergency Mgmt 0.1%
Transportation 3%
Libraries 4%
Parks & Recs 5%
Unrestricted Revenues are revenues that the City can use for any general expenditure.


Homeless Budget

Mayor Garcetti is proposing $800M towards solving homelessness. 

Of that amount, $9M will be allocated to the LAPD to patrol shelters & $57M will be allocated to carrying out encampment sweeps (an 84% increase from last year). $362M will also be spent on constructing permanent supportive housing & $140M on homeless services.


Full Breakdown

– LAPD gets 27% of total budget 
– Parks & Rec: 3%
– Transportation: 3%
– Libraries: 2%
– Housing: 2%
– Community Investment: 0.36%
– Cultural Affairs: 0.25%
– Emergency Mgmt: 0.05%

Update: Budget & Finance Committee Recommendations

After two weeks of reviewing Mayor Garcetti’s proposed budget, the Budget and Finance Committee issued the following recommended changes:

  • $4.2M increase for the City Attorney’s office
  • $269k increase for the Emergency Management Department
  • $1M increase for the Justice Fund
  • $2.1M increase for the Planning Department
  • $4.4M decrease for the Police Department
  • $16M increase for Parks & Rec
  • $2M increase for Transportation

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.

Take Action!

Email your councilmember!

Sending an email to your City Council Member and staff is one of the most effective ways to be heard. Check out peoplesbudgetla.com/toolkit.


Take the People’s Budget LA Survey!

Make your voice heard. Advocate for what your community needs by filling out the People’s Budget LA survey.

Source:

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

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