FOR IMMEDIATE RELEASE
April 13, 2026
Contact:
Countywide Communications
pio@ceo.lacounty.gov
Los Angeles County Previews 2026-27 Recommended Budget Prioritizing and Preserving Safety Net Services
$48.8 billion spending plan protects jobs and avoids broad cuts as County braces for deep federal funding cuts to Medi-Cal, CalFresh and other essential services
Los Angeles County’s 2026-27 Recommended Budget—which avoids the across-the-board cuts the County was forced to make last year but includes only $63.2 million in new ongoing local funding for programs and services—will be presented to the Board of Supervisors on Tuesday, April 14.
The Recommended Budget reflects a strategic belt-tightening approach while preserving critical safety net programs, including a proposed $40.1 million investment that protects more than 1,000 Department of Public Social Services jobs and sustains $194 million in federal and State support for CalFresh food benefits in the face of reductions due to H.R. 1, the “Big Bill.”
Additional federal policy changes to Medi-Cal and CalFresh eligibility, enrollment, and work requirements set to take effect in the next fiscal year are expected to have a devastating impact on those programs. The Department of Health Services budget reflects an estimated $662.2 million decline in federal support to maintain the current level of services.
“LA County is currently in the eye of a hurricane,” Acting Chief Executive Officer Joseph M. Nicchitta said. “Previous cuts of 8.5% and a hiring freeze helped balance our spending plan, but we’re preparing for major new budget impacts to our health and social services departments in 2027. We are doing all we can to prepare for the next phase of the storm.”
Across all County departments, the budget recommends a net decrease of 81 budgeted vacant positions, based on operational changes, for a total of 115,885 positions. But the budget includes no layoffs.
Another financial challenge is the County’s commitment to pay out more than $4.8 billion to compensate the survivors of childhood sexual abuse under Assembly Bill 218—the largest such settlement in American history. The budget recommends setting aside $300 million in one-time funding to help meet that commitment, but the County faces more than 6,000 new, unsettled claims. Many of these claims are driven by aggressive advertising by out-of-state lawyers, demonstrating the need for reforms to AB 218, including anti-fraud and anti-client harvesting guardrails. These reforms would preserve access to justice for survivors while disincentivizing abusive legal practices that pull money out of the public safety net and put it in the hands of lawyers.
The County is making major operational changes to better protect children in its care and budget recommendations include a position for CEO’s Risk Management Branch to oversee implementation of a comprehensive corrective action plan that includes civil service reforms.
Recovery from the January 2025 wildfires remains a priority. The Board of Supervisors has created two infrastructure financing districts that will leverage new property tax growth to promote investment and support recovery in Altadena and unincorporated Santa Monica Mountains and Sunset Mesa. To date, the federal government has not responded to the Governor’s February 2025 request for federal aid for rebuilding and recovery, but County officials continue to work with State and federal partners to secure the support local communities deserve.
New ongoing funding for the Recommended Budget, primarily from property tax growth, totals $334 million. Nearly 60% of this funding is already designated to pay cost of living increases and benefits for the County workforce. Another $26.7 million is earmarked for alternatives to incarceration and direct community investment, in line with Board policy to set aside 10% of the County’s ongoing locally generated unrestricted revenues in the general fund for Care First Community Investment, as envisioned by Measure J. After meeting other non-negotiable commitments, only $63.2 million is available for new programs requiring ongoing funding.
In addition to the $40.1 million for DPSS, recommendations for ongoing funding include:
• $12 million to support public defenders and manage increased caseloads; and
• $9.9 million to expand the Office of Emergency Management by 44 positions as part of a multi-year plan to strengthen long-term emergency operations capacity.
The 2026-27 Recommended Budget also includes $554 million in one-time funding. This funding is from prior year allocations to County departments expected to be unspent by the end of the fiscal year on June 30, 2026. It can be allocated for one-time uses only, such as capital projects, and is the source for the $300 million recommended set aside for AB 218.
The budget also reflects new federal, State, Special District and other funding for a variety of needs, including $82.5 million for energy efficiency programs, $25.2 million for Fire Department emergency operations and $17.8 million for the Cash Assistance Program for Immigrants (CAPI).
The Board’s ongoing commitment to an emergency posture on homelessness is supported by $1.08 billion in Measure A funding, including $660 million for programs administered by the new Department of Homeless Services and Housing.
Given the scarcity of new discretionary local funding, this year’s budget reflects more than $2.1 billion in unmet needs for County departments. The $48.8 billion Recommended Budget represents only the first step in the County’s multi-phase annual budget process. The Chief Executive Office will be working with the Board and Department Heads to identify long-term solutions—from equitably raising fees to cutting costs and reallocating resources—to ensure long-term financial stability for the County.
Public hearings on the budget will begin on May 6.
More information about the County budget, including a library of short, animated explainer videos, can be found at ceo.lacounty.gov/budget.
Other Key Resources on the 2026-27 Recommended Budget: