Los Angeles’ $700 Million Budget Deficit

The primary cause of this deficit is the shortfall in City revenues caused by the impact of COVID-19. While the City Administrative Officer indicated that revenue would be off by $400 million to $600 million, we believe that the revenue gap may exceed $600 million given the current run rate and the City’s optimistic budget projections that assume a return to “normalcy” in January of 2021.

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