The city is facing fiscal concerns due a 35% reduction in tax revenue, overspending, an increase in liability payouts, and costs related to wildfire recovery.

On top of layoffs and budget cuts, the mayor’s budget proposal includes a pessimistic outlook for the city’s housing market in the upcoming year.

Since budget planning began, layoffs have been called "inevitable" with 3,500 positions on the chopping block. The final affected workforce number announced Monday included 1,647 filled position layoffs,