Mayor Karen Bass Proposes Balanced Budget for FY 26-27

The City of Los Angeles held a budget presentation meeting on April 20, 2026, where Mayor Karen Bass proposed a balanced budget for fiscal year 2026-2027 totaling $14.85 billion. The budget includes $8.5 billion in the general fund and $6.3 billion in special funds, with a nearly $500 million reserve fund. Key procurement and spending highlights include investments in infrastructure with over 170 new positions added to street services, Department of Transportation, and engineering, and an additional $20 million allocated for sidewalk repairs, lighting, and street projects in preparation for the upcoming Olympic and Paralympic Games. The budget also funds the installation of 60,000 new solar streetlights to address copper theft and improve environmental outcomes. Public safety funding is maintained with no layoffs, a focus on preventing LAPD force shrinkage, and over $7 million increased funding for unarmed crisis response programs like CIRCLE. The budget avoids reliance on reserve funds and includes a $200 million set-aside for liability payouts. Discussions also addressed the potential impact of a proposed $800 million business tax decrease, which city officials warned would devastate basic city services including the fire department. Overall, the budget reflects a strategic approach to maintaining and expanding critical city services, infrastructure improvements, and public safety ahead of major events like the World Cup and Olympics.