LA’s overspending nightmare laid bare as Nithya Raman prepares to inherit budget mess

Los Angeles Mayor-elect Nithya Raman will inherit a projected $321.8 million overspend for the current financial year, adding pressure as she prepares her first budget. The shortfall reflects rising costs across city departments and follows several years of budget and revenue problems.

The projection is 22% higher than the estimate at the same point last year. The Fire Department accounts for $140.9 million, with further overruns linked to liability payouts, the City Attorney and election costs. Proposed adjustments could address some of the gap, but leave $183.9 million unresolved; a separate forecast also points to a $166 million shortfall in 2027-28. Raman takes office on 14 December and must submit a budget proposal by 20 April.