On Tuesday, the Los Angeles County Economic Development Corporation is expected to release a study with detailed findings on the economic impact of COVID-19 to Los Angeles County. The nonprofit previewed some of the report's findings in a weekly webinar they've been holding with small business owners across the county. The full report will be published later on Tuesday.
On Monday, Los Angeles Mayor Eric Garcetti detailed deep cuts to the city’s 2020-21 budget. It’s the latest example of the havoc the COVID-19 pandemic has wrought across both the private and public sectors.
Garcetti had already signaled that there will be furloughs for the city's civilian workforce. The mayor estimated city workers are expected to forego about 10% of their salaries. The city's hiring freeze is also continuing. City Controller Ron Galperin released a staggering revised estimate for city revenues that forecast a $231 million revenue shortfall for this fiscal year, which ends in June, and up to $598 million next year, which begins July 1. In his State of the City address on Sunday, Mayor Garcetti said he had already moved to borrow $70 million from city special funds and reserve fund, furlough all civilian employees for 26 days, the equivalent of a 10% pay cut, and make significant cuts to many city departments, which "will have to operate at sharply reduced strength."
At the county level, KPCC’s Libby Denkmann reports that the Los Angeles County CEO and Board of Supervisors is forecasting a $1 billion decline in sales tax revenue between March 1 and the end of the fiscal year on June 30. That sales tax shortfall could double next year, depending on how long the economic slowdown lasts. County CEO Sachi Hamai will present next year's proposed budget to the Board of Supervisors April 28. She said in a statement the revenue outlook included "significant losses which, unfortunately, will have a major effect on programs that the County administers on behalf of our 10 million residents."
Today on AirTalk, we’ll dive deeper into how COVID-19 is impacting the Los Angeles County economy, which sectors are seeing the worst hit and how the City of Los Angeles’ budget fits into the picture.
You can read the full report from LAEDC here. As of the airing of this segment, the report had yet to be published so please check back periodically if you don't see the report right away.
For more from LAist and KPCC’s Libby Denkmann on the city budget cuts, click here to visit our guide to this year’s L.A. City budget.
With files from LAist
Bill Allen, CEO of the Los Angeles County Economic Development Corporation, a nonprofit organization that collaborates with public and private stakeholders in L.A. County to guide economic development