LA County Approves Final $54.2B Budget For FY2026-27

LOS ANGELES, CA — Bolstered by unspent money carried over from last year and a nearly $400 million reallocation of funds, the county Board of Supervisors approved a final $54.2 billion budget for the 2026-27 fiscal year Tuesday.

The spending plan is $3.9 billion higher than the initial budget adopted by the board in June. County CEO Joseph Nicchitta told the board the increase includes roughly $2 billion in unspent funds from the 2025-26 fiscal year and $391.1 million in "budget stabilization savings" realized through a reallocation of funding. Nicchitta said the reallocation was the result of a re- prioritization of funds that would not result in any cuts to public services.

"In making these difficult choices to no longer fund some work, our `north star' was a commitment to limiting the impact of our financial challenges on the nearly 10 million residents who rely on the County of Los Angeles for critical services," he wrote in a report to the board. "Should the county experience future unanticipated budget impacts, curtailments to programs and services may still be necessary."

He noted that the reallocation of funds would enable the county to cover a $1.2 billion annual legal payout related to thousands of childhood sexual assault cases filed under Assembly Bill 218, which temporary lifted the statute of limitations on such claims and leading to lawsuits alleging misconduct by county staff in juvenile halls and other facilities.

The reallocation efforts "also preserve a 2% scheduled cost-of-living adjustment and $2,000 one-time bonus this fiscal year, avoid cuts to programs and services, and support investments in the Board of Supervisor's highest priorities," Nicchitta wrote.

The final budget amendments give the county an overall workforce of 115,433 budgeted positions, which is 250 positions less than the initial budget adopted in June. The reduction is not expected to involve any layoffs of existing workers.

Board members on Tuesday hailed the work done on the revised budget.

"The budget is the most important work we do. It's also the most difficult," Supervisor Holly Mitchell said. "While we oversee one of the largest local government spending plans in the nation, it's still not enough to truly serve the needs of 10 million-plus residents. ... When we think about the breadth and scope of the work the county does, it remains a challenge."

She noted the revised budget was crafted during the "fourth consecutive year of slowing growth in locally generated revenues."

Supervisor Kathryn Barger said the financial realities mean the county will have to work to "stay within our means while safeguarding the core services that communities rely on most."

"As we discuss the county's fiscal outlook, we cannot lose sight of the significant resources that will still be needed for the long-term recovery of Altadena and the communities impacted by the Eaton Fire, as well as the Palisades Fire," she said. "We have identified more than $2 billion in damaged or destroyed public infrastructure for the Eaton Fire alone. Rebuilding that infrastructure will require resources well beyond what the county can shoulder on its own."

City News Service