The Boyle Heights Neighborhood Council will be allowed to roll over $24,000 in unused funds into the new fiscal year, offering community organizations another chance at funding they missed out on this year as the council works toward normal operations.
“No money was lost,” said Erica Gatica Doughty, a neighborhood empowerment advocate with Empower LA, at the June 25 meeting.
In December, Empower LA, which supports neighborhood council boards, froze the Boyle Heights Neighborhood Council’s funds for failing to meet department rules, leaving local Boyle Heights organizations unable to access grants set aside for schools and nonprofits.
While the new fiscal year began July 1, the council remains unable to approve grants or donations as it continues to operate under “exhaustive efforts” — a restricted status that limits decision-making powers.
Neighborhood Council rolls over frozen funds
Each year, the L.A. City Council determines how much a neighborhood council is able to roll over from one fiscal year to the next as part of the annual budget process. This year, neighborhood councils are allowed to roll over their entire unused budget amount, while in other years, there’s been a $10,000 cap.
That’s a critical allowance for Boyle Heights. The neighborhood council’s base budget for the 2025-26 fiscal year, will drop from $32,000 to $25,000, making rollover funds crucial to allow the council to pursue community engagement and improvement projects, along with paying for general operating costs.
At the May 28 neighborhood council meeting, the board discussed budgeting $24,257.57 to fund general operating expenses, which would constitute nearly its entire base allocation without rollover funds.
Council enters new year still under restricted status
Over the past several months, the board has fulfilled requirements to return to normal operating status. These efforts have included filling board vacancies, filing outstanding expense reports and establishing an outreach plan. Yet, the council will remain in “exhaustive efforts” as it enters the new fiscal year because four board members have yet to complete the required training.
“If we continue to have board members who have not completed the training, then we will remain in exhaustive efforts — even if we fulfill all the other requirements,” said Gatica Doughty.
The Boyle Heights Neighborhood Council will seat newly elected board members at its meeting on Wednesday, July 23, and plan to distribute flyers in parts of the neighborhood to encourage community participation. A motion to host the July meeting at the Boyle Heights City Hall failed, so the council will continue to meet exclusively via Zoom.
Reporting for this story came from notes taken by Dominic Tovar, a Los Angeles Documenter, at the Boyle Heights Neighborhood Council meeting. The Documenters program trains and pays community members to document what happens at public meetings. Check out the meeting notes and audio on Documenters.org.
