budget committee

The Los Angeles City Council on Wednesday approved a fivefold increase to its contract with a law firm that drew heated criticism for the invoices it submitted in a high-stakes homelessness case.

Three months ago, Gibson, Dunn & Crutcher billed the city $1.8 million for two weeks of legal work, with 15 of its attorneys billing nearly $1,300 per hour. By Aug. 8, the cost of the firm’s work had jumped to $3.2 million.

The price tag infuriated some on the council, who pointed out that they had approved a three-year contract capped at $900,000 — and specifically had asked for regular updates on the case.

Despite those concerns, the council voted 10-3 Wednesday to increase the firm’s contract to nearly $5 million for the current fiscal year, which ends in June 2026. Councilmember Katy Yaroslavsky supported the move, saying Gibson Dunn’s work has been “essential to protecting the city’s interests.”

“At the same time, we put new oversight in place to ensure any additional funding requests come back to council before more money is allocated,” said Yaroslavsky, who heads the council’s budget committee.

Councilmembers Tim McOsker, Adrin Nazarian and Nithya Raman voted against the contract increase.

McOsker, who also sits on the budget committee, said he was not satisfied with Gibson Dunn’s effort to scale back the amount it is charging the city. After the council asked for the cost to be reduced, the firm shaved $210,000 off of the bill, he said.

“I think Gibson should have given up more, and should have been pressed to give up more,” McOsker said after the vote.

A Gibson Dunn attorney who heads up the team that represents the city did not immediately respond to a request for comment. Meanwhile, an aide to City Atty. Hydee Feldstein Soto welcomed the council’s vote.

“We are pleased that the City Council recognizes and appreciates the strong legal representation that Gibson, Dunn & Crutcher has provided and continues to provide to the city,” said Karen Richardson, a spokesperson for Feldstein Soto, in a statement.

Gibson Dunn was retained by the city in mid-May, one week before a major hearing in the case filed by the L.A. Alliance for Human Rights, a nonprofit group that has been at odds with the city over its handling of the homelessness crisis since 2020.

The city reached a settlement with the L.A. Alliance in 2022, agreeing to create 12,915 homeless shelter beds or other housing opportunities. Since then, the L.A. Alliance has repeatedly accused the city of failing to comply with the terms of the settlement agreement.

In May, a federal judge overseeing the settlement called a seven-day hearing to determine whether he should take authority over the city’s homelessness programs from Mayor Karen Bass and the City Council, and hand them over to a third party. Alliance lawyers said during those proceedings that they wanted to call Bass and two council members to testify.

In the run-up to that hearing, the city hired Gibson Dunn, a powerhouse law firm that secured a landmark Supreme Court ruling that upheld laws prohibiting homeless people from camping in public spaces.

Feldstein Soto has praised Gibson Dunn’s work in the L.A. Alliance case, saying the firm helped the city retain control over its homelessness programs, while also keeping Bass and the two council members off the stand. She commended the firm for getting up to speed on the settlement, mastering a complex set of policy matters within a week.

Feldstein Soto initially hoped to increase the size of the Gibson Dunn contract to nearly $6 million through 2027 — only to be rebuffed by council members unhappy with the billing situation. On Wednesday, at the recommendation of the council’s budget committee, the council signed off on nearly $5 million over one year.

A portion of that money will likely go toward the filing of an appeal of a federal judge’s order in the LA Alliance case, Feldstein Soto said in a memo.

Faced with lingering criticism from council members, Feldstein Soto agreed to help with the cost of the Gibson Dunn contract, committing $1 million from her office’s budget. The council also tapped $4 million from the city’s “unappropriated balance,” an account for funds that have not yet been allocated.

By transferring the money to the Gibson Dunn contract, the council depleted much of the funding that would have gone to outside law firms over the current budget year, said McOsker, who called the move “bad fiscal management.”

Raman, who heads the council’s homelessness committee, said her dissenting vote wasn’t about the price of the services charged by Gibson Dunn, but rather the fact that so much was spent without council approval.

“As someone who is watching that money very closely, I was frustrated,” she said. “So my ‘no’ vote was based on that frustration.”

A key committee of the Los Angeles City Council voted Friday to cut the number of employees targeted for layoff by Mayor Karen Bass by more than half, bringing the total down to an estimated 650.

The council’s budget committee took steps to save more than 1,000 jobs by pursuing an array of cost-cutting measures, such as hiring fewer police officers and scaling back funding for Bass’ Inside Safe program, which moves homeless people into temporary or permanent housing.

Councilmember Katy Yaroslavsky, who chairs the committee, said those and many other moves would help the city protect core services, including tree trimming, street resurfacing, street light repair and sanitation teams that address illegal dumping.

“We looked for ways to save positions — not for the sake of job counts only, but to make sure the departments can still do the work our constituents need them to do for their quality of life,” said Yaroslavsky, who represents part of the Westside.

The committee’s recommendations for the proposed 2025-26 budget now head to the full council, which is scheduled to take them up on Thursday.

Councilmember Eunisses Hernandez, who sits on the committee, expressed some optimism after the vote.

“We were in very rough waters, and a very different landscape, when we started this process,” said Hernandez, who represents part of the Eastside. “And now there seems to be some light between the clouds.”

As part of Friday’s deliberations, the budget committee voted to recommend a slowdown in sworn hiring at the LAPD, which would leave the agency with 8,400 officers by June 30, 2026. That represents a reduction of about 300 from the current fiscal year and 1,600 compared with 2020.

The budget committee also agreed to eliminate 42 emergency incident technicians at the fire department, a move opposed by interim Fire Chief Ronnie Villanueva, while also canceling Bass’ plan for a new homelessness unit within that agency.

In addition, the five-member panel recommended a hike in parking meter fees, which is expected to generate $14 million in the upcoming fiscal year.

Yaroslavsky said the changes endorsed by the budget committee on Friday would save about 150 civilian workers in the police department.

Chief Legislative Analyst Sharon Tso, who advises the council, said she believes that city officials will keep finding ways to reduce the number of layoffs, by transferring workers to vacant city positions or to agencies that are unaffected by the budget crisis, such as Los Angeles World Airports and the Port of Los Angeles.

“I think we’re going to be able to truly get that number down to less than 500,” she told the committee.

Bass, faced with a nearly $1-billion shortfall, released a proposed budget last month that called for the layoff of about 1,600 employees, a fourth of them civilian workers at the LAPD. Some of the largest reductions were planned at agencies that handle sanitation, street repairs and maintenance of city facilities.

Friday’s deliberations set the stage for many positions to remain intact, particularly at the Department of City Planning, which had been facing 115 layoffs. Kevin Keller, executive officer with that agency, said the committee found the funding to restore more than 100 of those positions.

“I know there’s a lot of city workers that are breathing a big sigh of relief tonight,” said Roy Samaan, president of the Engineers and Architects Assn., whose union represents planning department employees.

L.A.’s budget crisis has been attributed to a number of factors, including rapidly rising legal payouts, lower-than-expected tax revenue and a package of raises for the city workforce that is expected to add $250 million to the upcoming budget, which goes into effect on July 1.

Bass and the council have been hoping to persuade city labor unions to provide financial concessions that would help avoid more cuts. So far, no deals have been struck.

On Friday, before the committee began its deliberations, Bass said she is optimistic about avoiding layoffs entirely. At the same time, she spoke against a budget strategy that pits the hiring of police officers against the preservation of other jobs, calling it “a Sophie’s Choice.”

If the LAPD slows down hiring, it will have fewer officers in the run-up to next year’s hosting of the World Cup, she said.

“I’m not going accept that as my choice,” she said.

During the final minutes of Friday’s five-hour meeting, council members made some last-minute restorations, identifying additional funds for youth programs, tree trimming and fire department mechanics. Hernandez pushed for the committee to restore $1 million for Represent LA, which provides legal defense of immigrants facing deportation or other enforcement actions, and $500,000 for graffiti paint-out crews.

Hernandez said the city needs to stand by immigrants amid a harsh federal crackdown. And she described graffiti removal as crucial for public safety in her district.

“Getting graffiti down quickly prevents a lot more people from getting shot, prevents them from getting killed,” she said.

WASHINGTON — In a massive setback, House Republicans failed Friday to push their big package of tax breaks and spending cuts through the Budget Committee, as a handful of conservatives joined all Democrats in a stunning vote against it.

The hard-right lawmakers are insisting on steeper spending cuts to Medicaid and the Biden-era green energy tax breaks, among other changes, before they will give their support to President Trump’s “big beautiful bill.” They warn the tax cuts alone would pile onto the nation’s $36-trillion debt.

The failed vote, 16-21, stalls, for now, House Speaker Mike Johnson’s push to have the package approved next week. But the holdout lawmakers vowed to stay all weekend to negotiate changes as the president is returning to Washington from the Middle East.

“Something needs to change or you’re not going to get my support,” said Rep. Chip Roy (R-Texas).

Tallying a whopping 1,116 pages, the One Big Beautiful Bill Act, named with a nod to Trump, is teetering at a critical moment. Conservatives are holding out for steeper cuts to Medicaid and other programs to help offset the costs of the tax breaks. But at the same time, lawmakers from high-tax states including New York and California are demanding a deeper tax deduction, known as SALT, for their constituents.

Johnson has insisted Republicans are on track to pass the bill, which he believes will inject a dose of stability into a wavering economy.

Democrats slammed the package, but they will be powerless to stop it if Republicans are united. They emphasized that millions of people would lose their health coverage if the bill passes while the wealthiest Americans would reap enormous tax cuts. They also said it would increase future deficits.

“That is bad economics. It is unconscionable,” said Rep. Brendan Boyle of Pennsylvania, the top Democratic lawmaker on the panel.

The Budget panel is one of the final stops before the package is sent to the full House floor for a vote, which is expected as soon as next week. Typically, the job of the Budget Committee is more administrative as it compiles the work of 11 committees that drew up various parts of the big bill.

But Friday’s meeting proved momentous. Republicans hold a slim majority in the House and have just a few votes to spare to advance the measure, including on the Budget Committee.

Four Republican conservatives initially voted against the package — Roy and Reps. Ralph Norman of South Carolina, Josh Brecheen of Oklahoma and Andrew Clyde of Georgia. Then one, Rep. Lloyd Smucker of Pennsylvania, switched his vote to no.

The conservative holdouts from the Freedom Caucus are insisting on deeper cuts — particularly to Medicaid. They want new work requirements for aid recipients to start immediately, rather than on Jan. 1, 2029, as the package proposes.

Roy complained that the legislation front-loads new tax cuts and spending while back-loading the savings.

“We are writing checks we cannot cash, and our children are going to pay the price,” Roy said.

“Sadly,” added Norman, “I’m a hard no until we get this ironed out.”

At the same time, the New Yorkers have been unrelenting in their demand for a much larger SALT deduction than what is proposed in the bill, which could send the overall cost of the package skyrocketing.

As it stands, the bill proposes tripling what’s currently a $10,000 cap on the state and local tax deduction, increasing it to $30,000 for joint filers with incomes up to $400,000 a year.

Rep. Nick LaLota, one of the New York lawmakers leading the SALT effort, said they have proposed a deduction of $62,000 for single filers and $124,000 for joint filers.

The conservatives and the New Yorkers are at odds, each jockeying for their priorities as Johnson labors to keep the package on track to pass the House by Memorial Day and then onto the Senate.

“This is always what happens when you have a big bill like this,” said Majority Leader Steve Scalise (R-La.). “There’s always final details to work out all the way up until the last minute. So we’re going to keep working. There’s a lot of work to be done.”

At its core, the sprawling package extends the existing income tax cuts that were approved during Trump’s first term, in 2017, and adds new ones that the president campaigned on in 2024, including no taxes on tips, overtime pay and some auto loans.

It increases some tax breaks for middle-income earners, including a bolstered standard deduction of $32,000 for joint filers and a temporary $500 boost to the child tax credit, bringing it to $2,500.

It also provides an infusion of $350 billion for Trump’s deportation agenda and to bolster the Pentagon.

To offset more than $5 million in lost revenue, the package proposes rolling back other tax breaks, namely the green energy tax credits approved as part of President Biden’s Inflation Reduction Act. Some conservatives want those to end immediately.

The package also seeks to cover the costs by slashing more than $1 trillion from healthcare and food assistance programs over the course of a decade, in part by imposing work requirements on able-bodied adults.

Certain Medicaid recipients would need to engage in 80 hours a month of work or other community options to receive healthcare. Older Americans receiving food aid through the Supplemental Nutrition Assistance Program, known as SNAP, would also see the program’s current work requirement for able-bodied participants without dependents extended to include those ages 55-64. States would also be required to shoulder a greater share of the program’s cost.

The nonpartisan Congressional Budget Office estimates at least 7.6 million fewer people with health insurance and about 3 million a month fewer SNAP recipients with the changes.

Mocking the name of the bill, Rep. Pramila Jayapal (D-Wash.) called it “one big, beautiful betrayal.”

“To pay for it,” Democratic Rep. Morgan McGarvey said, “kids in Kentucky will go hungry, nursing homes and hospitals will close, and millions of Americans will be kicked off their health insurance. It’s wrong.”

Mascaro and Freking write for the Associated Press. AP writer Leah Askarinam contributed to this report.

To Los Angeles City Council members searching desperately for cuts amid a budget crisis, the Fire Department’s emergency incident technicians are “drivers” whose main role is chauffeuring battalion chiefs to emergencies.

But LAFD officials say the position is much more than that. Emergency incident technicians are firefighters who play a key role in coordinating the response to fires, and losing them would put lives at risk, according to LAFD interim Chief Ronnie Villanueva.

“This is going to come back and bite us. This is not a matter of them just being a driver. It is not a driver. You have to just take that out of your minds of transporting someone somewhere,” Villanueva said, addressing the City Council’s budget committee at a hearing on Thursday.

Five months after the Palisades fire destroyed thousands of homes and prompted questions about whether the Fire Department was equipped to fight such a massive blaze, the budget committee moved forward with a recommendation to cut the emergency incident technician positions.

Of the 42 positions, 27 are currently filled. Those firefighters would not lose their jobs but would be reassigned, saving the city more than $7 million in the next fiscal year and about $10 million every year after that, according to City Administrative Officer Matt Szabo.

The city is facing a nearly $1-billion budget shortfall largely due to rising personnel costs, soaring legal payouts and a slowdown in the local economy. Mayor Karen Bass’ 2025-26 budget proposal, which suggested laying off more than 1,600 city employees, did not include reassigning the emergency incident technicians.

The budget committee, which stressed that the overall Fire Department budget is increasing, also recommended nixing Bass’ plan for creating a new unit within the department that would have added 67 employees to address issues stemming from the homelessness crisis.

At Thursday’s budget hearing, Councilmember Tim McOsker, who has two children who are firefighters, argued for cutting the emergency incident technician position, calling it “basically an aide.”

When Villanueva asked McOsker to put a cost on a firefighter’s life, McOsker said, “Invaluable.”

“I can say the same thing about very many of the 1,300 positions we’re cutting, because we’re also going to not be doing sidewalks, streets, curbs, gutters, tree trimming, changing out lights, making our communities safe,” McOsker added. “The reality is we have to balance a budget.”

The budget committee has sent its initial recommendations to Chief Legislative Analyst Sharon Tso, the City Council’s top policy advisor, who on Friday will present the committee with a full menu of strategies for cutting costs while preserving as many services as possible. The committee is then expected to finalize its recommendations and send the proposed budget to the full council, which must approve a final budget by the end of the month.

On the way to a scene, a “command team” consisting of a chief and an emergency incident technician “might be responsible to provide direction to the rescue of a trapped firefighter or civilians, firefighter tracking, and handle the risk management of a rapidly escalating incident,” Capt. Erik Scott, an LAFD spokesperson, said in a statement.

“The more complex the incident, the greater the need for Emergency Incident Technicians to facilitate emergency incident mitigation,” Scott added, with the types of incidents including “structure fires, brush fires, multi-casualty incidents, earthquakes, train collisions, building collapses, active shooter, airport and port emergencies etc.”

Gregg Avery, who retired last year as a battalion chief after 37 years with the LAFD, said that during his career, emergency incident technicians were called aides, then staff assistants. But Avery thought of them more as partners. The four EITs who worked for him often helped him with strategic decisions, and he encouraged them to question his decisions and offer advice.

“The EIT happens to drive the car. But to call them a driver is a bit demeaning and a bit minimizing,” he said.

While an EIT drives a battalion chief to a fire or other emergency, both work the radios to develop strategies for tackling the situation, according to Avery and a video produced by the LAFD. They communicate with fire commanders, firefighters on the scene, police officers and agencies such as the Department of Water and Power and the U.S. Forest Service.

At the scene, they work with the incident commander to keep track of firefighters and other personnel — a crucial role in chaotic situations when forgetting a single firefighter’s location could be fatal, both Villanueva and Avery said.

But at the Thursday budget hearing, Villanueva struggled to articulate what EITs do when they aren’t responding to scenes.

“They visit fire stations and they deliver mail. They talk about the current events. If there’s any questions they need to be asked … the EIT will assist with those. They do staffing,” Villanueva said.

According to Avery, EITs act as liaisons between firefighters and battalion chiefs. Since they are firefighters themselves and members of the labor union, they can relate to the rank-and-file, Avery said.

The EIT positions were cut once before — in 2010, during another major budget crunch in the Great Recession. Since then, the department has been adding them back.

Avery remembers working without an EIT after the cuts.

“Emergency operations were profoundly different and not as good,” he said.