California lawmakers ask for nearly $2 billion to fund LA's fire recovery

After a visit from Los Angeles Mayor Karen Bass and a handful of council members, California lawmakers asked the state legislature for nearly $2 billion to help the city's wildfire recovery effort.

"Los Angeles is facing a budget crisis while recovering from devastating and unprecedented wildfires, and it's important that we advocate directly to state leaders for support," said Mayor Karen Bass.

The massive request for $1.893 billion comes a week after LA's Administrative Officer Matt Szabo warned the council about a $1 billion shortfall that made thousands of layoffs for city employees "nearly inevitable." During his presentation to the city council, Szabo said the  layoffs "cannot and will not be the only solution." The city delegation's pleas resulted in 22 state lawmakers, most of whom represent Southern California, signing the budgetary request, mainly focusing on wildfire recovery. However, roughly a third of the request will address the problems plaguing the city's revenue shortfall. 

"The recent fires put our budget challenges on steroids and it's imperative that state leaders continue to partner with local governments so we can preserve critical services for our shared constituents," Councilmember Bob Blumenfield said.

Out of the six budgetary concerns listed in the lawmakers' letter, the bulk of the nearly $2 billion request, $750 million, would go towards "mitigation and resilience for city residents:"

• $700 million loan to upgrade Pacific Palisades' electrical grid. 
• $40 million to incentivize electric upgrades and appliances 
• $10 million to improve the traffic signal system

The letter also requests $638 million to pay for the city's budget gap:

• $250 million to improve streets, sidewalks and street lights
• $200 million to fund liability payments
• $150 million to refill the city's reserve fund 
• $38 million to offset the lost revenue from the Palisades Fire
  

Of the remaining $505 million, roughly $430 million would help improve LA's firefighting capabilities and pay for recovery efforts, including debris removal, building permit waivers and centers to help connect residents to resources. The final $75.5 million will expedite processing of FEMA funds from previous emergencies, mainly the COVID-19 pandemic. 

"But this trip to Sacramento wasn't about a one-time fix, it was about laying the foundation for a stronger, more resilient city," said Council Budget Chairwoman Katy Yaroslavsky. With the Olympic and Paralympic Games on the horizon, the urgency is real, and so is the opportunity to shape a future where Los Angeles doesn't just recover, but thrives."