LA Budget Impacts on CRE

Los Angeles Mayor Karen Bass and the City Council recently approved a $12.8 billion budget for the 2024-2025 fiscal year.  

Budget cuts affecting staffing might lead to delays in permitting and inspections for commercial real estate projects, which could also affect security measures. 

What You Need to Know

The budget is reducing 1,700 empty jobs in various city departments.  

The budget cuts are partly to pay for agreed-upon raises for city workers like police, firefighters, gardeners, clerks, mechanics, custodians, etc.  

About a quarter of the budget goes to the LAPD.  

Some council members want to move more money from police hiring to other areas because it's. However, others remain committed to continued high levels of investment in public safety. 

$185 million is set aside for Mayor Bass' program, Inside Safe, which has already housed over 2,700 homeless people temporarily.  

Despite lower-than-expected receipts during the first year of implementation, the city is increasing the amount budgeted from ULA funds from $150 million to $400 million. 

How It Impacts You

Due to staff reductions in agencies such as Building & Safety, businesses might experience longer waits for plan reviews, inspections, and other permits unless vacant positions are filled.  

Cuts to departments like Public Works and Recreation & Parks could lead to delays in street/sidewalk repairs and less maintenance in parks if positions remain unfilled.  

With a rise in violent crimes like robberies reported by LAPD, businesses may need to increase security measures such as surveillance and hiring guards.  

The budget suggests potential updates to the LA Convention Center, which could stimulate more business activity in downtown areas if implemented. 

Stay Connected

To dive deeper into the budget, go to here. 

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