Budget · Revenue
Where does the City's money come from?
The General Fund collected $9.79B in FY2025-26, 96.1% of the $10.19B budgeted. Property tax is the largest single source.
General Fund revenue, FY2025-26
This is the money that pays for General Fund services (police, fire, parks, streets and the rest): $9.8B of budgeted operating revenue collected in FY2025-26, against $10.2B budgeted. It excludes DWP, the airports and the harbor, which run their own books, and the special funds tied to a single purpose.
Where every dollar comes from
Top 10 General Fund revenue sources, as a share of revenue collected. 48% of all revenue comes from 5 sources.
- Property tax (secured)20%20%$2.0B
- Business tax8.8%8.8%$858.8M
- Property tax (VLF replacement)7%7%$687.3M
- Sales and use tax6.9%6.9%$672.3M
- Electricity users tax5.7%5.7%$556.6M
- Hotel tax (TOT)2.8%2.8%$274.5M
- Interfund operating transfer: Sewer Construction2.6%2.6%$250.9M
- Ambulance fees2.5%2.5%$240.0M
- Additional interfund transfer: other funds2.4%2.4%$231.3M
- Interfund operating transfer: Power2.3%2.3%$225.8M
Collected as a share of budget
- Property tax (secured)
- 99.4%
- Business tax
- 104.1%
- Property tax (VLF replacement)
- 99.5%
- Sales and use tax
- 103.8%
- Electricity users tax
- 109.2%
Property tax (secured) brought in $2.0B, the single largest source and 20% of General Fund revenue collected. This counts the secured property tax roll only; the VLF replacement is listed separately.
The top 3 sources (Property tax (secured), Business tax, Property tax (VLF replacement)) deliver 35.8% of all General Fund revenue.
LA collects $2,511 per resident a year, about $6.88 a day. That covers police, fire, parks, streets, libraries and every other General Fund service. Based on an estimated population of ~3.9M (U.S. Census), each $1 per resident is about $3.9 million in total.
Revenue and spending
The City collected $9.8B in General Fund revenue and spent $9.5B in FY2025-26. Revenue exceeded spending.
Revenue vs. spending
General Fund revenue collected vs. actual expenditures, FY2011-12 to FY2025-26
| Fiscal year | Revenue collected | Actual spending | Budgeted spending | Annual surplus or deficit |
|---|---|---|---|---|
| FY2011-12 | $5.20B | $5.25B | $5.20B | -$54M |
| FY2012-13 | $5.47B | $5.43B | $5.42B | +$41M |
| FY2013-14 | $5.84B | $5.71B | $5.79B | +$126M |
| FY2014-15 | $6.10B | $6.00B | $6.05B | +$97M |
| FY2015-16 | $6.30B | $6.29B | $6.37B | +$18M |
| FY2016-17 | $6.75B | $6.66B | $6.57B | +$93M |
| FY2017-18 | $6.90B | $6.84B | $6.92B | +$57M |
| FY2018-19 | $7.35B | $7.26B | $7.34B | +$86M |
| FY2019-20 | $7.69B | $7.93B | $7.78B | -$239M |
| FY2020-21 | $7.41B | $7.81B | $7.85B | -$397M |
| FY2021-22 | $8.81B | $8.45B | $8.70B | +$351M |
| FY2022-23 | $8.91B | $8.58B | $8.74B | +$330M |
| FY2023-24 | $9.35B | $9.31B | $9.28B | +$47M |
| FY2024-25 | $9.53B | $9.51B | $9.38B | +$17M |
| FY2025-26 | $9.79B | $9.54B | $9.56B | +$250M |
Growth in revenue and spending
Compound annual growth rates since FY2011-12
From FY2011-12 to FY2025-26, revenue grew 4.63% a year and spending 4.36% a year. Revenue grew 0.3 percentage points a year faster.
Where the money goes
Top 5 General Fund departments by actual spending, FY2025-26
The top 2 departments (Non-departmental: General and Police) account for 56% of all General Fund spending.
LACERS pension contributions
As a share of General Fund revenue
| Fiscal year | Pension contributions, % of General Fund revenue |
|---|---|
| FY2011-12 | 8.2% |
| FY2012-13 | 7.7% |
| FY2013-14 | 7.8% |
| FY2014-15 | 7.9% |
| FY2015-16 | 8.7% |
| FY2016-17 | 8.2% |
| FY2017-18 | 8.0% |
| FY2018-19 | 8.0% |
| FY2019-20 | 8.7% |
| FY2020-21 | 8.9% |
| FY2021-22 | 7.8% |
| FY2022-23 | 8.5% |
| FY2023-24 | 8.7% |
- Current share
- 8.3%
- of General Fund revenue
- Annual cost
- $811.5M
- City contribution
- Growth, 5 years
- +38.3%
- in contributions
California requires cities to adopt balanced budgets, which means budgeted revenue equals budgeted spending. In practice, actual spending exceeded actual revenue in 3 of 15 years. The largest gap was a $397.4M deficit in FY2020-21.
City contributions to LACERS equal 8.3% of General Fund revenue ($811.5M a year), up 38.3% over 5 years.
LA collects $2,511 per resident in General Fund revenue and spends $2,447. Across 3.9M residents, the $64 per-person surplus totals $249.6M.
What changed in five years?
This section ranks the 15 General Fund revenue sources with the largest increases between FY2020-21 and FY2025-26. 15 sources grew by a combined $2.0B.
Change by revenue source, FY2020-21 to FY2025-26
Ranked by change, largest increase first. Ink = increase, oxblood = decrease. General Fund sources only.
- Property tax (secured)+$394.5M+25%
- Hotel tax (TOT)+$187.8M+217%
- Business tax+$185.4M+28%
- Ambulance fees+$167.1M+229%
- Property tax (VLF replacement)+$148.3M+28%
- Sales and use tax+$147.7M+28%
- Electricity users tax+$127.4M+30%
- Reimbursements from other agencies+$116.0Mnew
- Parking tax+$91.5M+156%
- Interfund transfers (Reserve Fund)+$81.6M+104%
- Interfund operating transfer: Sewer Construction+$73.7M+42%
- Interfund operating transfer: other funds+$63.9Mnew
- Franchise income: commercial and multi-family solid waste+$60.1Mnew
- Cost reimbursement from Recreation and Parks+$59.1M+112%
- Building and Safety Enterprise Fund: related costs+$57.0M+102%
Emergency ambulance services went from $73.0M to $240.0M, an increase of $167.1M (+229%).
The transient occupancy tax (hotel tax) was $86.7M in FY2020-21 and is now $274.5M (+$187.8M). It moves with tourism and is among the most volatile General Fund sources.
Property tax grew from $1.6B to $2.0B (+$394.5M), the largest single-source increase. Under Prop 13, assessed values on existing property can rise at most 2% a year, so this growth comes mostly from new construction and sales that reset the assessment to market value.
The business tax grew from $673.5M to $858.8M (+$185.4M). LA's gross receipts tax applies to nearly all business activity in the city.
Budgeted and collected, year by year
General Fund revenue, budgeted and collected
Budgeted (what the City expected) vs. collected (what actually came in), FY2011-12 to FY2025-26
| Fiscal year | Budgeted | Collected | Collection rate |
|---|---|---|---|
| FY2011-12 | $5.4B | $5.2B | 95.4% |
| FY2012-13 | $5.6B | $5.5B | 97.3% |
| FY2013-14 | $6.0B | $5.8B | 97.5% |
| FY2014-15 | $6.3B | $6.1B | 96.8% |
| FY2015-16 | $6.6B | $6.3B | 95.2% |
| FY2016-17 | $6.9B | $6.8B | 97.4% |
| FY2017-18 | $7.2B | $6.9B | 96.3% |
| FY2018-19 | $7.7B | $7.3B | 95.9% |
| FY2019-20 | $8.2B | $7.7B | 93.8% |
| FY2020-21 | $8.2B | $7.4B | 90.4% |
| FY2021-22 | $9.2B | $8.8B | 95.7% |
| FY2022-23 | $9.5B | $8.9B | 94.1% |
| FY2023-24 | $10.2B | $9.4B | 92.1% |
| FY2024-25 | $10.2B | $9.5B | 93.2% |
| FY2025-26 | $10.2B | $9.8B | 96.1% |
The largest taxes
The five largest taxes over 15 years
These five sources generate most General Fund revenue. Property tax is 45% of the five-tax total in FY2025-26.
| Fiscal year | Property tax | Business tax | Sales and use tax | Utility taxes | Hotel tax (TOT) |
|---|---|---|---|---|---|
| FY2011-12 | $875.0M | $425.9M | $323.2M | $303.8M | $151.7M |
| FY2012-13 | $954.9M | $433.8M | $339.0M | $320.4M | $167.8M |
| FY2013-14 | $1.0B | $460.1M | $356.5M | $331.3M | $184.4M |
| FY2014-15 | $1.1B | $479.9M | $371.0M | $363.7M | $202.9M |
| FY2015-16 | $1.1B | $490.9M | $417.5M | $360.3M | $230.8M |
| FY2016-17 | $1.2B | $509.7M | $520.4M | $356.6M | $265.7M |
| FY2017-18 | $1.3B | $535.9M | $529.8M | $386.5M | $299.1M |
| FY2018-19 | $1.4B | $583.4M | $581.4M | $417.5M | $318.9M |
| FY2019-20 | $1.5B | $636.6M | $556.2M | $434.8M | $253.5M |
| FY2020-21 | $1.6B | $673.5M | $524.6M | $429.2M | $110.4M |
| FY2021-22 | $1.6B | $733.8M | $687.3M | $438.4M | $239.1M |
| FY2022-23 | $1.7B | $796.4M | $713.6M | $453.6M | $310.0M |
| FY2023-24 | $1.8B | $753.8M | $678.9M | $480.8M | $311.4M |
| FY2024-25 | $1.9B | $811.6M | $662.0M | $500.6M | $305.8M |
| FY2025-26 | $2.0B | $858.8M | $672.3M | $556.6M | $309.8M |
| Tax | FY2025-26 | Change | Per year | Peak | Largest yearly change |
|---|---|---|---|---|---|
| Property tax | $2.0B | +124% | +5.9% | $2.0B (FY2025-26) | 9% |
| Business tax | $858.8M | +102% | +5.1% | $858.8M (FY2025-26) | 9% |
| Sales and use tax | $672.3M | +108% | +5.4% | $713.6M (FY2022-23) | 31% |
| Utility taxes | $556.6M | +83% | +4.4% | $556.6M (FY2025-26) | 11% |
| Hotel tax (TOT) | $309.8M | +104% | +5.2% | $318.9M (FY2018-19) | 117% |
Property tax is 45% of the five largest taxes. Its largest year-over-year change was 9%, against 117% for Hotel tax (TOT). Under Prop 13, assessed values on existing property can rise at most 2% a year; new construction and sales reset assessments to market value.
The hotel tax (TOT) fell 65% from FY2018-19 ($318.9M) to FY2020-21 ($110.4M). By FY2025-26 it reached $309.8M (97% of its pre-pandemic level).
Business tax is the steadiest (largest yearly change 9%) and Hotel tax (TOT) the most volatile (117%).
Revenue by fund
The General Fund is the City's main operating account; 1 special fund holds earmarked money that can't be used for general services.
Revenue by fund, FY2025-26
The 12 largest funds by revenue collected. At right: amount collected and the share of budget collected.
- General Fund100.0%100.0%$9.8B96%
- Zoo Enterprise Trust Fund0.0%0.0%$739K62%
The General Fund receives 100% of all budgeted revenue. This is the money the Mayor and Council can allocate to any purpose. The remaining 0% ($739K) sits in earmarked funds with legally restricted uses.
In FY2025-26, 0 funds of 2 collected more than budgeted and 2 fell short.
1 special fund holds $739K in earmarked revenue. Their uses are restricted by law or by the voters who approved them, so it cannot be redirected to general services.