LOS ANGELES — The Los Angeles City Council May 21 passed an $8.6 billion city budget for fiscal year 2016.
The budget eliminated an anticipated $165 million budget deficit, city officials said, and helps the city chip away at a structural deficit that it anticipates eliminating by fiscal 2019.
"Without a doubt, our city's budget situation has taken a turn for the better," said Councilmember Paul Krekorian, head of the council's budget and finance committee. "We experienced significant growth, maintained and even added neighborhood services, and established the largest rainy day fund in the city's history. This is the best budget we've had in years and it is because of responsible budgeting that will protect our city for years to come."
The budget anticipates $5.39 billion in revenues and benefits from revenue growth from property tax, utility users' tax, business tax, and sales tax, according to Krekorian.
It includes continued funding to bolster reserves with $313 million for the reserve fund and $92 million for the budget stabilization fund.
"Our work isn't done yet," Krekorian said. "There is still an ongoing structural deficit that we need to eliminate as soon as we can. As the economy continues to grow, I look forward to doing even more to restore services across the city."
Despite the City Council's continued austerity program, it was able to restore some city services.
"City residents asked for more tree trimming and sidewalk repair services for their neighborhoods and this year's budget delivers just that," said City Council President Herb Wesson. "The City Council was successful in creating the city's largest rainy day fund in history setting aside more than $300 million in reserve funding for the unexpected."
Funding included will repair 2,400 miles of street, fill 350,000 potholes and fund $20 million in sidewalk repairs.
The council also approved $55 million more for the fire department to hire 270 new firefighters and $1.8 million for fire safety and technological improvements. It also included $70 million for Los Angeles Police Department overtime and $4.5 million for body cameras.
