In Case You Missed It: Los Angeles Business Leaders Urge City Council: Protect Critical Jobs and City Services, Not Costly New Programs the City Can’t Afford

For Immediate Release: May 6, 2025

Contact: Molly Weedn, molly@weednpa.com

Amid 1,600+ layoffs and deep service cuts, organizations representing tens of thousands of LA businesses sent a letter urging the City Council to adopt a responsible budget—not expand programs the City can’t afford to administer or enforce.

Los Angeles, CA – As Los Angeles faces a nearly $1 billion budget deficit, more than 1,600 looming layoffs and sweeping service cuts, business leaders across the city are sounding the alarm. This week, dozens of organizations representing tens of thousands of local businesses sent a letter to the City Council urging them to reject costly new mandates and adopt a responsible budget that prioritizes the city’s economic recovery and protects jobs and essential services.

“We write to express our deep concern over the City’s current fiscal crisis and to urge the Council to adopt a fiscally responsible budget that prioritizes economic recovery, protects essential services and supports job retention–especially for the City’s hundreds of thousands of small businesses,” the letter states. 

Despite facing a financial crisis, the Council is considering new, costly and resource-intensive mandates like the Costly Restaurant Ordinance, the Living Wage Ordinance and the Hotel Worker Minimum Wage Ordinance—all of which would require hiring additional staff in departments already facing steep cuts.

For example, the proposed budget would eliminate 48% of the Office of Wage Standards’ workforce. According to the Bureau of Contract Administration (BCA), these cuts would severely hinder the City’s ability to enforce existing labor laws, delaying wage investigations by three to four years. The BCA further cautioned that it would be “very challenging” to absorb additional responsibilities, such as administering the Hotel Worker Minimum Wage Ordinance or expanding Fair Work Week to fast food workers.

“The City should not implement new mandates it cannot afford to administer—especially when doing so will further strain an already overwhelmed system,” the letter warns.

Business leaders also called attention to the broader economic pressures facing local businesses. Many—especially small and minority-owned—are still reeling from the pandemic and now face rising inflation, higher labor costs and sluggish consumer spending.

“New regulatory and financial burdens will result in fewer jobs, reduced worker hours, higher prices for Angelenos and lower City tax revenues to fund essential services,” the letter states.

In conclusion, the signatories urged the City Council to focus on lowering costs and creating economic opportunity—not on symbolic programs the City lacks the resources to implement.

“The stakes have never been higher. With essential services on the chopping block and thousands of jobs at risk, the Council must ensure every dollar and staff hour is focused on solving real problems—not expanding symbolic or duplicative programs that would deepen the crisis.” 

The full copy of the letter can be found here. 

Signers:

• American Hotel & Lodging Association
• Apartment Owners Association of California, Inc.
• Asian Business Association
• California Alliance of Family-Owned Businesses
• California Attractions and Parks Association
• California Apartment Association
• California Business Roundtable
• California Hotel & Lodging Association
• California Restaurant Association
• California Retailers Association
• California Travel Association
• Greater Los Angeles African American Chamber of Commerce (GLAAACC)
• Greater Los Angeles Hospitality Association
• Greater Los Angeles REALTORS®
• Greater San Fernando Valley Chamber of Commerce
• International Franchise Association
• Los Angeles County Business Federation (LA BizFed)
• Latin Business Association
• Latino Food Industry Association
• Latino Restaurant Association
• Multicultural Business Alliance
• National Association of Women Business Owners – Los Angeles Chapter
• Southland Regional Association of REALTORS®
• Valley Industry & Commerce Association (VICA)
• West Hollywood Chamber of Commerce