LA Faces $1 Billion Budget Hole, Warning Thousands of Layoffs

Los Angeles is facing a projected deficit of nearly $1 billion in the next fiscal year as the city grapples with the aftermath of historic wildfires and a deep decline in revenue.

A key budget official painted a grim picture of the city’s finances at a council meeting on Wednesday. Warnings included the possibility of thousands of layoffs and “extremely difficult cost-cutting decisions” that will be required to close the gap, said Matthew Szabo, the city administrative officer. The shortfall is about 13% of the adopted budget, a threshold he called “extraordinary.”

“This is an enormous hole to fill,” ...