Los Angeles City Controller Ron Galperin
(photo courtesy of the Los Angeles City Controller’s office)

Los Angeles City Controller Ron Galperin on Jan. 27 released L.A.’s annual comprehensive financial report for fiscal year 2021 – July 1, 2020, to June 30, 2021 – that details the city’s finances and charts how it navigated a full year of the pandemic.

The first two thirds of the year were marked by wage cuts and cost-saving measures, but the availability of COVID-19 vaccines and $1.28 billion in federal assistance eventually turned the tide, Galperin said.

“The pandemic hit the economy and our neighborhoods hard last year, putting the city in a financial bind,” he added. “Cost-cutting measures and federal funding helped Los Angeles get back on solid ground, but there are tough budget choices ahead. The city created a number of homelessness and equity programs with funds that won’t be there next year, making it necessary to understand whether they’ve achieved their goals.”

Overall city revenues increased by 5.2% to $18.4 billion, a positive shift from the 4% decrease the year before. The change is partly attributable to increases in property, sales and other taxes collected, Galperin said.

Expenses continued to climb, rising by 4.8% to $17.3 billion, although the upward trend slowed from the nearly 10% increase the year prior.

The general fund, the city’s main operating fund, saw revenue down by 1.3% in fiscal year 2021, but revenues still outpaced expenditures by $375.5 million and have continued to grow, Galperin said. During the first six months of the current fiscal year, revenues came in 11% higher than the same period last year.

Galperin said funding problems will arise in next year’s budget. The current budget used $300 million from the federal government to create new programs to build equity and alleviate homelessness. It also used money from prior year appropriations, including $70 million from the Los Angeles Police Department. The one-time funding will not be available for the next budget, leaving these programs at risk, the controller said.

For information, visit lacontroller.org/acfr2021.