Los Angeles Mayor Karen Bass announced Monday the city faces a $800 million deficit, plans on laying off 1,647 staff, is seeking a state bailout and has “identified new revenue.”
Bass blamed the Trump administration and the economy for falling revenue.
“Cities like ours are going through challenging economic times across the nation,” said Bass. “Turmoil and uncertainty from Washington and a slowing economy are causing lower revenue projections.”
With 61,455 employees, 1,647 layoffs equate to a workforce reduction of 2.7%. With just over $8.3 billion paid out in payroll last year, the city pays its employees an average of $135,355 per year, or more than double the median citywide salary of $57,247 per year.
This means the announced layoffs would only cover about a quarter of the at least $800 million deficit.
During her State of the City address Monday, Bass said she is traveling to Sacramento to seek a state bailout, but if the state is either unwilling or unable to fund such a bailout amid falling sales and corporate tax revenue and employment, more layoffs could be necessary.