Los Angeles Faces Deep Cuts: Mayor Bass Takes Pay Reduction Amid $1 Billion Budget Deficit

Los Angeles Mayor Karen Bass is taking a voluntary pay cut and freezing scheduled raises for her staff in response to the city’s looming $1 billion budget shortfall for the 2025–26 fiscal year. In a symbolic gesture of shared sacrifice, Bass announced that her annual salary of approximately $301,000 would be reduced, though the precise amount and timeline remain undisclosed.

The move comes as part of a broader $13.9 billion budget proposal that includes the elimination of more than 2,700 city positions—1,647 through layoffs and 1,053 through the removal of vacant roles. Departments impacted include civilian support staff at the LAPD (403 jobs), the Department of Transportation (262), sanitation (159), street services (130), and city planning (114).

In addition to the mayor’s personal pay cut, all cost-of-living adjustments for her staff—scheduled for June 2025 (4%), December 2025 (2%), and June 2026 (4%)—will be suspended.

Despite the severe reductions, the budget still represents an 8.2% increase over last year’s spending plan. The financial crisis is being driven by a 35% decline in tax revenue, rising labor costs, expanded liability payouts, and unanticipated expenses related to wildfire recovery. New labor contracts are also expected to increase city payrolls by roughly $250 million.

Mayor Bass has formally requested $2 billion in emergency state funding to help offset the fiscal shortfall. The City Council’s Budget and Finance Committee is reviewing the proposed budget to identify potential savings or alternatives to mass layoffs. Deliberations are scheduled to continue ahead of the July 1 fiscal year start.

Sources:

• ABC7: Mayor Bass to take pay cut as city faces $1B budget deficit

• ABC7: Mayor, City Council request $2B in state budget help