June 14, 2025 Your Source for Brentwood News

Los Angeles City Controller Warns of Financial Crisis as Liability Payouts Exceed Budget

Liability Claims Surpassed the City’s Annual Budget by $10 Million Three Months into 2024

Kenneth Mejia, the Los Angeles City Controller has issued a new social media statement on the state of the city’s finances, stating that the city is in danger of going broke. According to Meija’s post, the City of Los Angeles has exceeded its annual liability claims budget just three months into the fiscal year. The city had allocated $87 million for liability claims, but so far, it has spent $97 million. 

The bulk of the spending has come from three main areas:

  • Police Department: $59.4 million
  • Miscellaneous claims: $21.7 million
  • Street Services: $6.1 million

Most recently, on September 30, the Los Angeles City Council approved $40 million in payouts to settle lawsuits with the family of Mely Corado, the unarmed Silverlake Trader Joe’s manager who was shot and killed by LAPD officers, for $9.5 million, $17.7 million to the family of Kenneth French, a mentally disabled man shot and killed by an off duty LAPD officer in a Costco, and $11.8 million to James Simpson, a 70-year-old pedestrian who sued the city after another driver swerved to avoid the LAPD officer who ran a red light in Chino and was hit by a traffic light pole. 

Photo Credit:  LA Controller Kenneth Mejia Facebook

Liability claim payouts are not deducted from the budgets of the individual departments responsible but are instead drawn from the city’s General Fund. This fund is primarily intended to support city services and resources for Los Angeles residents, raising concerns about potential impacts on those services moving forward.

The overrun in the liability claims budget suggests that more funds may need to be allocated as the fiscal year progresses, placing additional strain on the city’s financial resources.

In a previous alert, Meija said, “In the last year, the city has spent half its reserves. The city is supposed to save at least 5% of its general fund for “unanticipated expenditures & revenue shortfalls.”

However, the reserve fund started this fiscal year below 5% at 4.12%. Just one year ago, the reserve fund was historically strong, at  $648 million. How did the city fall so far, so fast?   

1. Lower revenues (Short $222 million)

2. Higher labor costs, starting w/ A $1 billion raise for LAPD over four years

3. Record-level liability payouts

Less than 3 months into this fiscal year, the city is again dipping into its reserves to pay for liability claims (Already $170M over budget). It’s getting close to going below the 2.75% mark and when that happens, the city council must make a finding of a fiscal emergency.”

in News
Related Posts

Senator Alex Padilla Forcibly Removed, Handcuffed at DHS Press Briefing in Los Angeles

June 13, 2025

June 13, 2025

Security or Censorship? Padilla Removed After Questioning Secretary Kristi Noem U.S. Sen. Alex Padilla, D-Calif., was forcibly removed Thursday during...

Federal Court Halts Order Requiring Trump to Return Control of California Guard to Governor Newsom

June 13, 2025

June 13, 2025

Court Showdown Looms Over Trump’s Federalization of State Troops Late Thursday, a federal appeals court paused enforcement of a lower...

Harden Your Home, Protect Your Family: Fire Safety Experts Gather in Brentwood

June 13, 2025

June 13, 2025

Local Officials and Fire Experts Will Offer Live Demonstrations, Expert Advice Residents are invited to a comprehensive fire safety event...

‘No Kings: National Day of Defiance’ Protest in LA to Run Counter to Donald Trump’s Birthday Military Parade

June 13, 2025

June 13, 2025

Giant Trump Balloons, Pride Flags, and Community Speakers Will Fill the Streets on Flag Day Thousands of demonstrators are expected...

(Video) Senator Alex Padilla Being Forcibly Removed at Secretary Kristi Noem’s DHS Press Conference for Attempting to Ask Questions

June 12, 2025

June 12, 2025

In a disturbing and unprecedented move, FBI agents grabbed the sitting California Senator, dragged him out of the room, and...

Thatcher’s Wine Host Father’s Day Bordeaux Tasting, No Dad Credentials Required

June 12, 2025

June 12, 2025

Sample Rare Vintages From Premier French Estates This Sunday in Brentwood In honor of Father’s Day, Thatcher’s Wine in Brentwood...

World-Class Chefs and Local Farms Bring Culinary Magic to Santa Monica This June

June 12, 2025

June 12, 2025

3 Nights, 3 Unforgettable Dinners: Santa Monica’s Michelin + Farm Feast Series A trio of exclusive culinary events is set...

Immigrant Opened Her Doors to Injured Deputies and Demonstrators Offering Water, Aid, and Compassion

June 12, 2025

June 12, 2025

Salvadoran Restaurant Becomes Unexpected Refuge During L.A. Immigration Protest As immigration protests swept through parts of Los Angeles County over...

Mastro’s Malibu Reopens With Ocean Views, Signature Steaks, and Nearly Entire Staff Intact

June 11, 2025

June 11, 2025

Iconic Oceanfront Steakhouse Returns With Its Beloved Butter Cake, Nightly Live Music, and Sunset Glamour After a five-month closure due...

Chefs Susan Feniger and Mary Sue Milliken Serve Up Pride Month Specials That Give Back

June 11, 2025

June 11, 2025

Limited-Time Food, Cocktail Offerings at Socalo and Alice B. Support LGBTQ+ Centers In honor of Pride Month, acclaimed chefs Susan...

Local Representatives Jaqui Irwin, Brian Allen, and Horvath to Host Wildfire Preparedness Webinar

June 11, 2025

June 11, 2025

Virtual Wildfire Forum to Cover Readiness, Insurance, Public Safety Q&A Assemblymember Jacqui Irwin, State Senator Ben Allen, and Los Angeles...

Judge Denies Newsom’s Bid to Halt Military Expansion in L.A. Amid Immigration Raids

June 11, 2025

June 11, 2025

California’s Emergency TRO Blocked as Marines Await Domestic Use-of-Force Training  Efforts by California Gov. Gavin Newsom and Attorney General Rob...

The VA Enlists Federal HR Agency to Oversee Massive Layoff Planning

June 11, 2025

June 11, 2025

Agreement With OPM Follows Proposed Cuts to More Than 80,000 Jobs The U.S. Office of Personnel Management (OPM) has been...

Santa Monica ‘Pier 360’ Beach Festival Returns June 28–29 with Two Days of Surf, Sports, and SoCal Vibes

June 10, 2025

June 10, 2025

Free All-Ages Event Features Ocean Races, Skate Competitions, Roller Rink, Beer Garden, Live Music, Kids Activities, And More The Santa...

Brentwood Crime Reports Paused as Senior Lead Officer Assigned to Downtown Protests

June 10, 2025

June 10, 2025

SLO Kirk Temporarily Reassigned; Weekly Crime Updates on Hold Until Further Notice Senior Lead Officer of Brentwood, Matthew Kirk, who...