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City of Los Angeles' deficit growing for next fiscal year



The city's deficit for next year could be $90 million more than expected, according to a fiscal update.
The city's deficit for next year could be $90 million more than expected, according to a fiscal update.
Photo by Kansas Sebastian via Flickr Creative Commons

The city of Los Angeles is anticipating a large budget deficit next summer due in part to unexpected salary and health care costs for city workers, according to a financial report that will be presented to the City Council's Budget and Finance Committee Monday. 

When the next fiscal year starts in July, the city's deficit could be as much as $242 million. That's about $90 million more than what the city's top budget official had anticipated. The growing shortfall is the result of unexpected salary and health care costs for city workers. It also includes $45 million in un-budgeted overtime for firefighters and police officers.

City Administrative Officer Miguel Santana will likely recommend the budget committee move funds around to close a funding gap for the current fiscal year. Most of this year's deficit is the result of ongoing challenges within the Los Angeles Fire Department. 

The Budget and Finance Committee is expected to discuss the report when it meets at 2 p.m.