Revised $13.9B budget averts 1,000 layoffs but reduces LAPD staffing and homelessness aid—raising concerns in underserved Latino neighborhoods.
In response to a looming $1 billion budget deficit, the Los Angeles City Council has approved a revised $13.9 billion budget for the 2025-26 fiscal year, averting 1,000 layoffs but triggering deep cuts in key services and public safety—including significant reductions to police staffing and homelessness programs. The effects are expected to disproportionately impact Latino communities across Los Angeles, which rely heavily on city services and safety-net programs.
Facing rising legal liabilities, stalled revenues, and costly labor contracts, the Council made difficult trade-offs. The number of proposed layoffs was reduced from 1,647 to 650, and several specialized city roles were saved. However, this was achieved in part by slashing LAPD hiring by 50%, which will reduce the department’s size to a 20-year low of 8,400 officers by 2026.
Councilmember Katy Yaroslavsky, chair of the Budget Committee, described the budget as a tough but necessary response to “the most serious budget crisis the city has seen in nearly two decades.” Councilmember Bob Blumenfield was more blunt: “You can’t take a billion dollars out of the budget and not have reduced services.”
The revised budget includes a 10% cut to Mayor Karen Bass’ “Inside Safe” homelessness initiative and eliminates plans to add street medicine teams at the Fire Department. These cuts come as Los Angeles County pulls $300 million from the LA Homeless Services Authority, heightening the risk of worsening conditions for unhoused Angelenos—many of whom are Latino.
Other cuts include reduced funding for sanitation, tree trimming, and illegal dumping response—services that directly affect quality of life in dense, working-class Latino neighborhoods like Boyle Heights, Pacoima, and South L.A.
Latino communities will also feel the ripple effects of staff reductions in the Department of Transportation, Sanitation, and Recreation and Parks—departments that maintain public spaces, organize youth programming, and ensure clean streets. While some positions were restored, not all were saved, and councilmembers acknowledged that remaining staff will face heavier workloads and slower service delivery.
The budget’s most contentious cut—slashing LAPD hiring by half—has sparked fears over public safety, especially as the city prepares to host global events like the World Cup and Olympics. Councilmembers Monica Rodriguez and Traci Park, both of whom voted against the budget, argued the city is ill-prepared to maintain security amid dwindling law enforcement numbers.
Assistant LAPD Chief Dan Randolph warned the department is reaching “critical lows,” which could hinder emergency response and investigative work in areas already struggling with crime and limited trust in police.
For the Latino community—nearly half of the city’s population—these budget decisions strike at a time of deepening inequality. Many Latino families depend on public services due to income disparities and underinvestment in their neighborhoods. The reduction in services, particularly related to sanitation, public safety, and homelessness outreach, threatens to reverse gains made through years of advocacy and investment.
Councilmember Yaroslavsky hinted at federal uncertainties that could compound the crisis, mentioning concerns over potential cuts in Trump-era policies affecting housing and healthcare. “All sorts of things that trickle down to local government… that’s drying up,” she said.
As the city finalizes its budget in the coming weeks, community leaders are urging further dialogue to prevent the Latino community from bearing the brunt of the fallout. Labor unions, too, may be asked to forgo raises or accept furloughs to reduce layoffs—a decision with significant implications for city workers, many of whom are Latino.
While the revised budget saves jobs and avoids catastrophic service shutdowns, it introduces cuts that risk undermining public safety, community services, and homelessness programs—strains that will fall hardest on Los Angeles’ Latino communities. Without careful monitoring and future investment, advocates fear this budget crisis could deepen long-standing disparities across the city.
