Budget gap raises questions about services and reserves
Inglewood city leaders are preparing for a projected $30.8 million shortfall in the general fund next fiscal year — the largest deficit the city has faced in at least two decades. The gap comes after a decade of rapid revenue and spending growth tied in part to the opening of SoFi Stadium and other stadium-centered development.
The city’s general fund has grown by roughly $100 million over the last 10 years, driven by increased property and admissions taxes. But officials and budget documents show that revenue growth has largely plateaued over the past five years while spending continued to rise, leaving Inglewood with a projected imbalance as it finalizes the next year’s budget.
Reserves, a ballot measure and the prospect of cutbacks
City officials have sought to reassure residents that immediate service cuts are not inevitable. Inglewood currently maintains more than $150 million in reserves, which officials say could cover the shortfall for the coming year. The ultimate outcome, however, depends heavily on voter action in November.
- Projected general fund deficit: $30.8 million
- City reserves available: more than $150 million
- Proposed Measure AT projected revenue: $45 million to $50 million
- Planned general fund spending this year: $279 million
- Total city budget: $675 million
Measure AT, a revenue measure on the Nov. 3 ballot, would levy additional taxes on ticket sales for major events. City projections presented by officials estimate the measure could generate between $45 million and $50 million, potentially eliminating the projected deficit and restoring a buffer for future years.
“Locals have no reason to worry,”
Mayor James Butts said city reserves and future revenue increases put the city in a position to manage the shortfall without immediate changes to services. But budget analysts and city history underscore the stakes: if spending continues to outpace revenue and the city exhausts reserves, leaders could face the kinds of staff layoffs and program cuts that followed a fiscal crisis about 15 years ago.
Where the money goes and how the picture changed
In the years since SoFi Stadium opened in 2020, Inglewood roughly doubled general fund expenditures to support an expanded slate of services and projects. The proposed general fund spending for the current year is about $279 million, while the total city budget — which includes special funds for capital projects, affordable housing and similar programs — stands at approximately $675 million.
That expansion in spending was financed initially by elevated tax revenues tied to development and large events, but city documents indicate those revenue gains have slowed. As a result, the steady rise in expenditures has outstripped revenue growth, producing the current projected deficit.
Choices ahead for voters and council
The City Council planned to vote on the budget proposal at its regular meeting today. Officials say the outcome will reflect both short-term choices — whether to draw on reserves to balance the next fiscal year — and longer-term decisions tied to voter approval of Measure AT.
If voters approve the admissions tax hike, city leaders anticipate the additional receipts could not only erase the projected gap but provide added flexibility for future budget years. If Measure AT fails or produces less revenue than forecast, the city could face tougher choices, including higher fees, reduced services or layoffs to bring expenditures in line with revenues.
| Item | Amount |
|---|---|
| Projected general fund deficit | $30.8M |
| Reserves on hand | > $150M |
| Projected Measure AT revenue | $45M–$50M |
| Planned general fund spending | $279M |
With the November ballot looming, residents will decide whether to shoulder new taxes tied to large events — a choice that will shape how Inglewood balances near-term fiscal pressures with long-term ambitions for services and development.
