The City of Los Angeles is facing a potential $1 billion budget shortfall. LA’s fiscal challenges have been compounded by factors like lower-than-expected tax revenues and higher payouts for legal settlements, all while preparing to rebuild after January’s devastating wildfires. 

Los Angeles City Councilmember and Budget Committee chair Katy Yaroslavsky recently joined “Inside the Issues” host Amrit Singh to discuss the shortfall and potential solutions to LA’s gloomy economic future.

“We can’t keep doing things the way we’ve been doing them,” Councilmember Yaroslavsky said. “We’re focused this year on balancing this budget, but also acting strategically to start make better decisions about how we can move ourselves to a path of fiscal solvency that helps us increase services we know Angelenos deserve and respect, and want us to provide.”

Yaroslavsky recently wrote a letter with LA City Council President Marqueece Harris-Dawson outlining key priorities for the 2025-2026 fiscal year budget, which includes re-organizing city departments. 

“Think about what your org chart of a department would look like, so you provide and optimize those services,” said Councilmember Yaroslavsky. “Focus on data and outcomes, and then figure out your work plans based on what your outcomes to be, and that’s a totally different way from how we do it now.”

Councilmember Yaroslavsky recently joined Mayor Karen Bass and other city leaders on a trip to Sacramento to advocate for funding for LA’s wildfire recovery, noting Los Angeles’ importance to a prosperous California. 

“Los Angeles is basically a quarter of the state’s economy. Everyone in the state should be in invested in the success of Los Angeles,” said Yaroslavsky. “And so we went up there and made that case.”

Click on the video above to watch the full interview with Councilmember Katy Yaroslavsky.