As the Los Angeles City Council looks to finalize its revised budget this week, labor leaders warned Tuesday of the consequences they believe will be felt as a result of the elimination of vacant positions.
The City Council had been scheduled Tuesday to approve its annual budget resolution for 2025-26, but a vote on the matter was delayed because the paperwork had not yet been submitted to the council file.
The item was re-scheduled for Wednesday's council meeting. The resolution must be submitted to the council in a joint report by the city attorney's office, city administrative officer and chief legislative analyst.
Last week, the City Council preliminary approved the revised $14 billion budget. It requires a second vote before the spending plan can be sent to Mayor Karen Bass' desk for her consideration.
Bass' initial plan called for 1,647 layoffs and the elimination of 1,053 vacant positions. While elected officials touted the revised spending plan would save 1,000 jobs, labor leaders Tuesday said the loss of positions would cause severe cuts to essential services and increase liabilities in the next fiscal year.
Charles Leon, a regional coordinator at SEIU Local 721, who sits on the joint labor management committee related to vacancy rates, recognized the City Council's efforts to reduce layoffs. But on the loss of vacancies, he said this was "nothing new."
"The current financial crisis is the next step in the downward spiral of severe understaffing due to budget constraints in previous cycles and chronic under-investment in the city workforce for -- at this point -- generations," Leon said.
Leon noted that the coalition is committed to working with elected officials on workforce development. He called for open discussions to improve service delivery and promote career opportunities for historically underserved communities.
"This discussion needs to start now -- not at some better time in the unforeseeable future," Leon said.
He pointed to AB 2561, which went into effect Jan. 1. The state bill amended the Meyers-Milias-Brown Act and introduced new obligations for public agencies to track and present information on job vacancies.
He also highlighted how as a result of the past financial crisis in 2009, the Coalition of LA City Unions entered into a so-called "workforce restoration agreement" in 2015. That agreement with the city aimed to hire 5,000 city employees by the end of that fiscal year.
"That never happened," Leon said.
According to Leon, the issue -- in part -- rises from private contracts.
"We've got private contracted security. You've had chronic vacancies with security officers. You've got private custodial contracts. You've had chronic understaffing with custodians, which at one time were up to 600 custodians. Today, you've got 200. It is embarrassing," Leon said.
He urged the city to eliminate or reduce its reliance on private contractors and bring the work in house.
Councilwoman Nithya Raman noted there has been a commitment on both sides to collect information that would meaningfully shed light on the issues.
"There were a number of other metrics that I thought were very useful to have as part of this conversation, so that progress on retention, progress on hiring from within and promoting from within can be something that this council meaningfully monitors and monitors over time...," Raman said.
Key aspects of the revised spending plan approved by the council last week include money for 240 new police officers over the coming year, down from 480 proposed by the mayor; and 58 new employees for the Los Angeles Fire Department, also a reduction from 227 proposed by Bass.
Overall, the police and fire departments are expected to receive a year-over-year increase in their operational budgets. Council members Monica Rodriguez, Traci Park and John Lee opposed the revised budget, citing concerns with resources allocated to public safety.
The council also reduced spending in Bass' signature program, Inside Safe. But Rodriguez had said more money should have been shifted out due to lack of oversight and its cost.
Meanwhile, Councilman Tim McOsker had emphasized that without cost-cutting measures to the city's public safety departments, it would have resulted in more layoffs and threats to core services such as street repairs, sanitation, street lighting, and so much more.
He reiterated that the council could have an opportunity to increase police hiring if the economic outlook improves.
The deficit is a result of overspending, costly liability payouts, lower tax revenues, labor contracts and fire recovery, among other challenges. The city is expected to cover $250 million due to labor agreements in 2025-26.
City Council members also agreed to use $29 million in the city's budget stabilization fund to help address the deficit. Additionally, they expect to collect an additional $20 million in business tax revenue and the city is expected to increase the cost of parking tickets, which could raise $14 million.
The revised budget includes $5 million for the Animal Services Department, which Bass called for; funding to continue the Climate Emergency Mobilization Office; among other things.