Los Angeles Mayor Signs Budget for 2021-2022 Fiscal Year, Investing $955 Million in Homelessness and COVID-19 Recovery

Strategic Insights -

Los Angeles Mayor Eric Garcetti signed the budget for the 2021-2022 Fiscal Year, a spending plan that dedicates nearly $1 billion to confronting the homelessness crisis, $300 million for racial and economic justice, and commits critical resources to helping Angelenos recover from COVID-19. The Los Angeles City Council passed the final budget by a unanimous vote, marking a significant step forward in addressing the city's most pressing issues.

Key Takeaways:

  • The budget dedicates $955 million to confronting the homelessness crisis, with $791 million from the City's own resources and $164 million from carryover state and federal funding.
  • This is the City's largest-ever investment to address homelessness, with a breakdown of $362 million for 89 projects and over 5,600 housing units through Proposition HHH; $200 million for affordable housing, homeless prevention, eviction defense, and other homeless services; and $43 million for Project Roomkey.
  • The budget also allocates $300 million for racial and economic justice across the city, with $151 million going to equity and justice programs; $281 million for homeless services; $244 million to restore vital services; and $64 million for COVID response and recovery.
  • Key components of the budget include $62 million for the Small Business and Restaurant Recovery Fund, L.A. Al Fresco, and steps to help revitalize the tourism and hospitality industries; $40 million in the City's COVID Emergency Fund to expand the Mobile Outreach for Vaccine Equity (MOVE) program; and $29 million for America's largest guaranteed basic income pilot to date.
  • The budget also includes $8.7 million to employ high-barrier young adults to clean and beautify communities, and $3.5 million to train and pay 1,000 low-income high school students to home-tutor young siblings who have struggled with distance learning.
  • Cumulative reserves of 8.6% were also included in the budget.

Statistics:

  • $791 million: The City's largest-ever investment to confront the homelessness crisis.
  • $955 million: The total budget dedicated to addressing homelessness, including carryover state and federal funding.
  • 89 projects and over 5,600 housing units: The number of housing units supported through Proposition HHH.
  • 62 million: The amount allocated for the Small Business and Restaurant Recovery Fund, L.A. Al Fresco, and other initiatives to revitalize the tourism and hospitality industries.
  • 40 million: The amount allocated in the City's COVID Emergency Fund to expand the Mobile Outreach for Vaccine Equity (MOVE) program.
  • 29 million: The amount allocated for America's largest guaranteed basic income pilot to date.
  • 8.6%: The cumulative reserves included in the budget.

Sources:

  • The office of the Los Angeles Mayor
  • Los Angeles City Council
  • Mayor Eric Garcetti
  • Council President Nury Martinez
  • Councilmember Paul Krekorian
  • Aqeela Sherrills, Executive Director of the Community Based Public Safety Association
  • Maria Brenes, Executive Director of InnerCity Struggle and a member of the Making LA Whole coalition