LA’s ~$1 Billion Deficit and the Future of Local Government

Chapters

00:00 Introduction

04:43 The Importance of City Budgets

08:10 Los Angeles Budget Challenges and Deficits

14:08 The Fires on LA Budget

21:35 Civic Engagement and Community Leadership

30:20 Lessons From 40 Years of City Reform

36:27 The Future of Local Government

43:42 Conclusion and Final Thoughts

Los Angeles is facing a billion-dollar budget shortfall. But this isn’t a blip. It’s a structural crisis with lessons that apply to cities far beyond LA.

In this episode, I sit down with Rick Cole, one of the most respected voices in local government. Over nearly four decades, he’s served as a mayor, city manager, and now Chief Deputy Controller for the City of LA. Few people have seen more from the inside.

We talk about why LA’s budget crisis was both predictable and preventable, what most people get wrong about how city budgets actually work, and why short-term thinking is dragging our institutions toward decline. Rick explains how the city missed a once-in-a-generation opportunity around the 2028 Olympics, why infrastructure neglect is catching up to us, and what it would take to turn things around.

At its core, this is a conversation about leadership, civic responsibility, and whether we’re willing to invest in the future. Rick doesn’t sugarcoat the problems, but he also hasn’t given up on what’s possible.

If you care about California’s future, local democracy, or how cities actually function, you'll enjoy this conversation. Subscribe at californiafuturesociety.com to get more conversations like this.

Keywords

local government, California, budget crisis, civic engagement, city management, public policy, community responsibility, future of California, leadership, public-private partnerships