Report: 64% of LA city employees don’t live in Los Angeles; many can’t afford to live there

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LOS ANGELES - Six out of 10 municipal employees did not live in Los Angeles in 2022, equating to about $3.6 billion in pay exiting the city, according to a report released Monday by Controller Kenneth Mejia's office.

Mejia directed his staff to conduct a residency analysis of the 2022 City of Los Angeles Employee Payroll, which showed that 64% of city employees, not including the Department of Water and Power, lived outside the city, or about 32,066 employees, representing about $3.6 billion in payroll.

City employees are not required to live in the city, according to Meija's office.

According to the report, some of the benefits of city employees living in the city they work in is being able to reinvest tax dollars back into the city; increasing the city's budget as a result of more local revenue, which can lead to more spending on city resources and services; supporting local communities city employees serve; shorter commutes and faster response time in case of work emergencies; and less traffic, greenhouse gas emissions and stress on workers and their families.

Of the 32,066 city employees that lived outside of the city, about 6,350 employees, or 20%, earned less than $50,000.

About 3.6 out of every 10 city employees, minus DWP, live in the city, or about 18,246 employees, amounting to $1.2 billion in payroll. Of the 18,246 employees that lived in the city, about 9,000, or 49%, made less than $50,000.

Meija's report showed that 506 city employees lived out of state, amounting to $65 million in payroll, and 71% of them were from the L.A. fire and police departments.

The report showed that there are more employees that lived outside of the city, who worked in the following departments:

-- Fire, about 86% of employees, which amounted to $656 million in payroll;

-- Police, about 81% of employees, which amounted to $1.45 billion in payroll;

-- Pension, about 77% of employees, which amounted to $14 million in payroll; and

-- Information Technology Agency, about 75% of employees, which amounted to $33 million in payroll.

The report showed that there are more employees that lived in the city, who worked in the following departments:

-- Aging, about 72% of employees, which amounted to $2.6 million in payroll;

-- Recreation and Parks, about 70% of employees, which amounted to $109 million in payroll;

-- Council, 66% of employees, which amounted to $23 million in payroll; and

-- Library, about 63% of employees, which amounted to $47 million in payroll.

"Where people choose to live is the product of many factors -- including affordability, lifestyle choices, and family ties," Mejia's report reads. "But a close match between city staff and the communities they serve strengthens not only the economic health of Los Angeles, it also strengthens the bond of connection and public trust."

The city has programs such as Targeted Local Hire that are intended to hire from local communities, but Mejia said he believes reform of the civil service system is needed to expand those opportunities beyond entry-level positions -- usually lower paying positions compared to other city jobs.

The controller's report notes hiring locally is important considering that the city "suffers from chronic staffing vacancies where one out of every six jobs are unfilled." The report suggests implementing incentives for employees, including first responders, to live in the communities they serve.

"Continued progress toward promoting additional affordable housing in our city, especially workforce housing and transit-oriented community projects, can offer more and better choices that are affordable to city workers," the report said.