The Board of Supervisors on Tuesday, April 19, got a first formal look at the county’s proposed $38.5 billion spending plan for the new fiscal year — which Los Angeles County’s chief financial official said looks to balance values such as equity and the need to transform the region’s criminal justice and public health systems with the need to maintain public safety and keep up with a relentless homeless crisis.
“This budget marks a turning point,” said Fesia Davenport, L.A. County CEO, looking back at a difficult last two years of budget cycles, only now coming into an era of increased property and sales tax revenues and the lifting of hiring freezes. “While mindful of the challenges on the road ahead, We believe we are rounding a corner finally into a dynamic new period where a broad based and equitable recovery can be our primary focus, even as we continue to respond to the public health demands of the evolving pandemic.”
The proposed budget is only a “starting point” that will include weeks of public comment as it makes its way to approval by June — a process that will be followed up with amendments in October, when state and federal dollars flow in.
Still, the opening chapter in the budget discussion over the county’s budget on Tuesday was a chance for a relatively progressive board to endorse and affirm what it wants the new budget to ultimately look like.
In short, they were pleased, touting it as a statement of the county’s values after two years of pandemic and the social disparities it exposed — disparities the budget seeks to address.
But supervisors were also mindful — as are county budget officials — that there are wildcards that could change the picture — ranging from inflation concerns, instability in the global capital markets, labor negotiations with county employee groups and the potential for recession.
The budget proposal reflects that county finance officials had to “say no” to requests for more funding from county departments, including the sheriff’s department, which has long complained of budget cuts.
Ultimately, though, “There’s lots of good news in this recommended budget,” said Board Chair Holly Mitchell, who touted the proposed budget’s emphasis on equity, transparency and community engagement in the decision-making process.”
It’s through that lens that the proposal was built, Davenport said.
The recommendation is $807 million less than the current fiscal year’s adopted budget, but $2.3 billion more than last year’s recommended budget.
The proposal foresees a positive economic outlook for the county, with property tax revenues expected to grow by 6% and sales tax revenues estimated to increase by nearly 8%. However, Davenport, who said this week that the county is “cautiously optimistic,” warned of challenges and uncertainties, including inflation, labor negotiations, continuing impacts from COVID-19, litigation and an unstable geopolitical climate affecting gas prices and global markets.
Generally, the budget recommendation is divided into $12.985 billion for health-related services, $9.597 billion for public assistance, $9.461 billion for public protection, $5.737 for general services and other costs, $737 million for recreation and culture.
The Sheriff’s Department is recommended to receive approximately $3.6 billion, roughly the same as the current fiscal year. But officials said this week the department had sought $500 million more.
The recommended budget also includes $493.3 million in Measure H funding to help with mental health resources and housing for people experiencing homelessness.
The budget recommendation includes funding for a total of 513 new positions, bringing the total number of county jobs to 111,551. Most of the new positions are focused on public health, health and safety net services, including 116 new public health positions, 196 new critical care unit nurses and 41 new “street medicine” clinic positions.
The recommended budget would also allocate $15.3 million for continued compliance with a federal consent decree governing conditions in the Men’s Central Jail, which the Board of Supervisors has committed to closing. The proposal also includes $12.3 million to expand sheriff’s academy classes and train a “new generation of deputies,” while continuing moves to rely more on mental-health professionals to respond to some incidents rather than law enforcement.
Also proposed is $100 million through Measure J for “community investments” and incarceration alternatives, and support for the county’s “Care First, Jails Last” program. In line with Measure J, the county aims to set aside the full 10% of its locally generated unrestricted revenue to support Care First and Community Investment programs by 2024.
Youth investments outlined in the recommended budget include $22.8 million for full-time childcare for CalWORKS families, $15.7 million for Youth@Work jobs program and $14.1 million for Department of Children and Family Services medical hub services.
The county is also expected to introduce four new departments in the next fiscal year, which Davenport said this week “must be some kind of record, at least in modern county times.”
The new departments are the Justice Care and Opportunities Department, the Youth Development Department, the Aging and Disabilities Department and the Department of Economic Opportunity.
The recommendation also includes $188 million for water conservation projects, $1.6 billion for capital projects and $85.3 million to enhance and expand parks.
The $38 billion is funded by several sources, including 22%, or $8.5 billion, from the state and 15%, or $5.8 billion, from the federal government. However, both state and federal revenues are tied to specific programs. The county also has $8.124 billion from charges for services, $8.3 billion from property taxes and $7 billion other revenues.
Supervisor Kuehl generally endorsed the proposal while emphasizing the need to continue, maintain and grow the county’s affordable housing trust fund at a time of crisis-level homelessness; growing funding necessary to keep pushing forward the county’s “care first, jails last” initiative; and investing in the county’s Office of Diversion and Reentry.
Supervisor Janice Hahn couched the budget in historical terms, hearkening back to the days of her late father, Kenneth Hahn, an influential supervisor for decades. She praised what she said was its effort to deal with “quality of life” issues — from parks to streets.
“This is a massive budget… lots to digest…. but I do think it sets us on the right foot for the next fiscal year to keep ourselves accountable to the public for the job we were all elected to do,” she said.
Supervisor Kathryn Barger shared in the generally optimistic about the county’s revenue outlook, but she was mindful of the impacts from dips in the economy.
“These are all uncertainties that are manageable if we tackle them and if we walk into them with our eyes wide open,” Barger said.
All agreed that the pandemic itself remains among those uncertainties. Davenport said the region’s public health department must be funded at a level that allows it to respond to future emergencies.
Indeed. Supervisors Hilda Solis said many in the poorest areas of the county still don’t have access to services, and county resources must continue to shift to reach those populations.
She implored county officials to continue the budget process with the principle of equity in mind.
Mitchell agreed.
“Equity isn’t something that can be an afterthought, or merely sprinkled on top of a budget process,” she said. “It’s really got to be baked into our core policy and budget making decisions, and I think our county is doing that.”
City News Service contributed to this report
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