Mayor Garcetti proposes fiscally responsible 2020 budget with record reserves, investments in homelessness and infrastructure

Recognizing the City's strong fiscal management, both Fitch Ratings and Kroll Bond Rating Agency upgraded the City's rating to AA and AA+, respectively. 

LOS ANGELES — Mayor Eric Garcetti today unveiled his $10.6 billion spending plan which strengthens the City’s finances and includes record spending to end homelessness and improve Los Angeles’ infrastructure.

“Through a sound budget, we achieve a strong bottom line and strengthen Los Angeles from the bottom up,” said Mayor Eric Garcetti. “This proposed budget is a blueprint illustrating how we’ll achieve our highest ambitions — from ending homelessness to improving our infrastructure — while maintaining a commitment to fiscal responsibility that has helped to drive Los Angeles’ economic recovery.”   

Mayor Garcetti’s proposed budget continues to bolster the City’s fiscal foundation: For the first time since the recession, reserves exceed 8%, which makes Los Angeles fiscally resilient and better able to weather an economic downturn. The Reserve Fund is increased to $399 million, and includes a Budget Stabilization Fund of $110.9 million and an Unappropriated Balance of $20 million.  

The proposed budget calls for a record $940 million to improve and update the City’s infrastructure — $140 million more than the previous year. Also included is $348 million for street repairs and maintenance, and $117 million for Vision Zero and traffic and pedestrian safety projects. It allocates funding to advance the Mayor’s sustainability goals with $38 million in Measure W funds going toward clean water infrastructure, and $3 million for the City’s innovative Cool Pavement Program and investments in tree planting.       

The proposed budget includes the City’s largest-ever investment to end the homelessness crisis — with $457 million in permanent housing, temporary shelter, services, and facilities to help homeless Angelenos find their way off the streets. The budget anticipates spending $36 million in Homeless Emergency Aid Program (HEAP) funds that Mayor Garcetti advocated for, and received, from the state last year. As part of funding from the Prop. HHH initiative, $281 million will go toward 27 new permanent supportive housing and affordable housing projects providing more than 2,126 units.  

Mayor Garcetti’s proposed budget also calls for:

• Increasing police overtime by approximately 40 percent to cover all critical duties.
• Spending $3 million to help improve dispatch reliability and effective communications for public safety officers.
• Expanding the Advanced Provider Response Units and Fast Response Vehicles to more efficiently dispatch fire resources and emergency medical services.
• Installing electric vehicle chargers and related infrastructure at Police and Fire Stations, as well as streetlight poles.
• Increasing programming and capital improvements at cultural hubs.
• Funding for the Young Ambassadors Program giving College Promise students overseas travel and opportunities for global affairs education.
• Increasing funding for the LA’s BEST Program to offer summer learning at every LAUSD school in the City’s two Promise Zones.
• Investing in a social equity program focused on legal cannabis businesses.
• Committing more than $18 million for four A Bridge Home sites in South Los Angeles scheduled to open in 2019-20.
• Funding to continue five and open six new Safe Parking sites.
• Expanding comprehensive street cleanups and rapid response to keep neighborhoods safe and free of debris. 
• Sustaining syringe collection and HIV testing services at locations surrounding A Bridge Home facilities, as well as homeless encampments cleaned up by the City.