By JOSE HERRERA
The Los Angeles County Board of Supervisors has unanimously approved a $50.3 billion spending plan for fiscal year 2026-27, representing an increase of $1.5 billion compared to the current budget.
The Board of Supervisors finalized the spending plan Monday during a special meeting, authorizing changes to what was initially a $48.8 billion budget proposal in April. The new fiscal year will begin July 1.
County officials said the increase was primarily the result of shifting $1.3 billion in special funds and other restricted funding, and nearly $900 million from the state for behavioral health services. Estimated tax revenue in the proposed budget remained unchanged, according to county CEO Joseph Nicchitta.
He noted there is no new local money in the final changes.
The spending plan accounts for a total of 115,683 budgeted positions compared to what was initially 115,885 positions, a net decrease of 202 positions. Nicchitta said those positions do not represent layoffs but rather a change in departmental operational needs.
“We are contending with federal funding cuts and little changes to food and health care benefits under H.R. 1, a state budget deficit, increasing cost of services, and large scale liabilities, all of which are putting intense pressure on our budget, and forcing us to operate in a climate of uncertainty with several factors that are out of our control,” Nicchitta said.
“Our goal under these conditions is to prioritize critical safety net services over less immediate needs, and preserve rather than grow programs,” Nicchitta added.
County officials explained the spending increase consists of the nearly $900 million in Behavioral Health Services Act-related dollars, as well as $167.6 million for mental health programs, and $101.6 million in one-time funding for homeless services and housing, among other sources.
Another $15 million in existing funding that was budgeted to pay for retirement benefits will be re-purposed for other uses. There are no changes to retirement benefits nor does the funding represent new locally generated revenue, Nicchitta said.
The $15 million is expected to be allocated in the following ways:
— $7 million to operate and maintain county parks: Esperanza Hills, Charles White, Earvin “Magic” Johnson, and Wishing Street Park;
— $5 million to support the new Ethics Commission and Office of Ethics Compliance;
— $1.7 million for the Sheriff Department’s computer-aided dispatch system licenses;
— $300,000 for a medical examiner compliance officer to maintain the department’s accreditation, valid through 2030; and
— $200,000 for military and veterans affairs to support targeted suicide prevention and outreach.
The final budget also allocated one-time county funding, such as $9.1 million for the Youth@Work program, $3.3 million to continue supporting the Measure G Governance Reform Task Force, and $1.1 million for Preparing for Los Angeles County Employment.
There’s also one-time bridge funding, covering $4.2 million for Represent LA, $2 million for the Holistic Defense Program and $1.5 million for Self-Help Legal Access Centers. These dollars only cover up to six months of these programs. Another $1.4 million will help establish the county’s commercial cannabis program.
Nicchitta said the board’s approval marks the end of the second phase of a three-phase process, adding that a supplemental budget will come before the supervisors on September 29 for approval.
“The supplement budget will reflect the impacts of the state budget, budget adjustments based on year-end fund balance, and any new information available as the federal government provides additional details on the implementation of regulatory changes,” Nicchitta said.
“We’re also working to bring back budget recommendations for Measure ER over the next few months, and will be programmed in the supplemental budget,” Nicchitta added.
Supervisor and Board Chair Hilda Solis thanked county staff for their hard work on finalizing the budget under such challenging situations.
“We’re going to navigate through this, and we’re going to do it with foresight, strategic planning, and I think a lot of courage,” Solis said.
The county must address a combined $4.8 billion in legal payouts related to more than 11,000 childhood sexual assault cases, with more claims being filed — roughly 150 per month, officials previously said.
On fire recovery, the county created two infrastructure financing districts that are expected to leverage new property tax growth support to recovery in Altadena, and unincorporated Santa Monica Mountains and Sunset Mesa.
Due to changes in federal funding, the county Department of Health Services estimated a reduction of about $662.2 million — which may likely be offset by recently approved local tax. Measure ER, a five-year, half-cent sales tax to fund healthcare and essential public services, is expected to generate $1 billion annually.
“Despite all these difficulties…. I am a bit optimistic,” Solis said.
Supervisor Kathryn Barger echoed Solis’ concerns.
“The reality is that Los Angeles County is being asked to do more with less in one of the most challenging fiscal environments I have experienced in more than 35 years of County service,” Barger said.
“Significant federal funding reductions, combined with the ongoing financial obligations stemming from AB 218 settlements, have created extraordinary budget pressures that require careful stewardship of every public dollar,” Barger added.