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According to a Research, Employees in Los Angeles Pay Out $3.6 Billion to Those Who Reside Outside of the City

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Nearly 64% of employees of the city of Los Angeles live outside of the city limits, according to a recent payroll analysis, which caused $3.6 billion to leave the city last year, officials said on Monday.

The L.A. municipal Controller Kenneth Mejia issued the L.A. Payroll Employee Residence Analysis, which looked at the income and housing of municipal employees in 2022 (apart from those who worked for the department of water and power).

Although living in Los Angeles is not a requirement for city employees, the report points out a few advantages of doing so, such as:

  • putting local spending and sales taxes back into the city to reinvest tax revenue
  • Increased municipal revenue can translate into higher spending on civic services and resources.
  • increased involvement with the local communities where workers are employed in
  • quicker reaction times in the event of an emergency at work
  • Reduced greenhouse gas emissions, traffic, and strain on employees and their families

The controller’s office claims that one of the biggest costs in the city budget is staff payroll, thus it’s critical to understand “literally” where the tax money paid by residents—which goes toward paying local employees—is spent.

The data shows that more than 32,000 of the 50,312 city employees in Los Angeles do not reside within the city borders. The City of Angels employs 18,246 people who live there and make $1.2 billion in wages.

86% of firefighters and 81% of police officers were among the top departments and offices whose workers resided outside of city borders.

The audit also mentioned 506 out-of-state employees of the city.

Top on the list of employees who reside in Los Angeles is the Department of Aging for the City of Los Angeles (72%), followed by the Department of Recreation and Parks (70%).

The study discovered that the top 10 neighboring cities where city of Los Angeles employees resided were as follows:

According to a Research, Employees in Los Angeles Pay Out $3.6 Billion to Those Who Reside Outside of the City

According to the controller’s office’s report, “where people choose to live is the product of many factors – including affordability, lifestyle choices, and family ties.” “However, strong ties and public trust are strengthened when City employees and the communities they serve get along well. This benefits Los Angeles’s economy as well.”

According to Mejia’s study, the civil service system has to be reformed since there should be more career prospects available than entry-level posts, which are typically the lowest paying jobs. The controller added that one out of every six positions in Los Angeles is empty due to a persistent shortage of workers.

Mejia stated in the report that “other large cities have implemented incentives for employees, including first responders, to live in the communities they service.” “More and better options that are affordable for City workers can be provided by sustained efforts to promote additional affordable housing in our city, particularly workforce housing and transit-oriented community projects.”

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