Local News
Wildfires could cost Los Angeles billions, but the financial fallout is just beginning
The City of Los Angeles and Los Angeles County will have to front the costs of wildfire recovery on their own, with no immediate financial relief from state or federal agencies, officials said on Friday, Feb 7.
The damage estimate, currently set at $358 million for the city, comes as L.A. struggles with ongoing budget deficits. While FEMA and the state will eventually cover some costs, including debris removal and emergency response, the city and county must figure out how to pay for repairs now—without knowing how much of the cost will ultimately fall on taxpayers.
Los Angeles Councilmember Monica Rodriguez, who sits on the city’s Budget and Finance Committee, said the lack of direct aid puts immediate financial pressure on the city.
“ I think the most salient part of it is the City of Los Angeles has not been the recipient of any direct infusion of either federal or state funds to help us address the financial impacts associated with fighting the fires, nor the recovery,” Rodriguez said on Friday. “So we have to advance those resources and then wait for eligible FEMA reimbursements associated with that work.”
What the federal and state governments cover
Brandi Richard Thompson, a public affairs officer for FEMA Region 9, said the agency will fully cover debris removal and emergency response efforts for six months under a presidential declaration issued before the end of the Biden administration.
“Typically, the federal government or FEMA funds 75% and the state of California is responsible for the other 25%,” she said. “But for those particular categories of public assistance, debris removal and emergency protective measures, we are going to pay the full cost for six months, or 180 days.”
But rebuilding roads, bridges, and other public infrastructure won’t be fully covered. Local governments can apply for FEMA funding under the public assistance program, but they will still have to pay a significant share of the cost.
There is also a caveat: Federal emergency funds are not immediate—and they don’t cover everything.
While the city and county will eventually receive some reimbursements, federal rules require local governments to pay for disaster recovery first and seek reimbursement later—a process that can be delayed by months or even years.
“The amount that the county or the city is spending right now, they’re going to have to do some work to pull all that information together. … We’ll either approve or deny that, and then that money will be obligated and available to them,” said Thompson, speaking for FEMA. “But right now, they’re actually paying for that themselves and we’re going to reimburse them for it later.”
Beyond FEMA’s reimbursement delays, the state is not providing direct financial assistance to the city for wildfire recovery, further complicating efforts to pay for repairs.
Rodriguez said that while Governor Gavin Newsom announced a $2.5 billion wildfire relief package, none of that money is directly allocated to Los Angeles for its own recovery efforts.
She explained that $1 billion of the funds are being used to cover the costs incurred by state agencies—such as Cal OES and Cal Fire—for sending personnel and resources to fight the fire.
The remaining $1.5 billion comes from Proposition 4, a recently passed statewide resiliency bond measure, which includes funding for water quality and wildfire prevention efforts. But the state legislature has not yet decided how the money will be distributed, meaning Los Angeles has no guarantee of receiving any of those funds for wildfire recovery.
“ That’s not a check that’s just coming to us, for us to decide what that is,” Rodriguez said. “The state Legislature will meet and determine which programs or efforts they will fund, and then we’ll know what it covers, if anything, for each of our respective areas.”
What is the cost of the wildfires to the city?
With no guarantee of state funding, Los Angeles is left to shoulder the financial burden of wildfire recovery—an effort that is expected to cost the city at least $358 million, a figure expected to rise, according to initial estimates from Los Angeles City Administrative Officer Matt Szabo.
The estimate accounts for damages from Jan. 7 to Jan. 10, with $350 million tied to infrastructure and city properties, $6.6 million for emergency response, and $1.2 million for debris removal, primarily from wind damage.
Szabo said that additional costs from Jan. 7 to Jan. 17 could add at least $24 million, largely for staffing and overtime.
The wildfire costs hit as Los Angeles faces an escalating budget crisis.
Just a third of the way through its fiscal year, the city had already overspent its budget by nearly $300 million as of December.
In the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024, City Controller Kenneth Mejia warned that Los Angeles had ended the year in deficit, forcing officials to draw down nearly half of the city’s General Fund reserves.
“Given the devastating damage and disruptions from the firestorm disaster, the fiscal stress could not come at a worse time,” Mejia wrote. “We’ve gone from record levels of General Fund reserves 18 months ago to the brink of needing to officially declare a ‘fiscal emergency’.”
He added that costs are still mounting, from disaster response and lost tax revenue to long-term rebuilding efforts, all while the city prepares for the 2028 Olympic and Paralympic Games.
While the city has released a preliminary $358 million damage estimate, county officials have yet to determine their total financial burden, saying assessments are still ongoing.
However, a recent UCLA report suggests the economic toll could be far greater. That study estimates that total property and capital losses across Los Angeles County could range from $95 billion to $164 billion, with insured losses alone reaching $75 billion.
If accurate, this would make the wildfires the second-costliest natural disaster in U.S. history, trailing only Hurricane Katrina, which caused $200 billion in damages — adjusted for inflation — according to the National Oceanic and Atmospheric Administration (NOAA).
The report, written by UCLA economists Zhiyun Li and William Yu, warns that the wildfires’ impact extends beyond property losses. They estimate the disaster will shrink Los Angeles’ GDP by $4.6 billion (0.5%) in 2025 and lead to $297 million in lost wages for businesses and workers in affected areas.
Without significant wildfire mitigation and long-term investments, economists warn that California homeowners will face rising insurance premiums, deteriorating air quality, and growing health risks from wildfire pollution. In Los Angeles, the disaster is expected to tighten rental markets further, worsening the region’s housing shortage.
While estimates vary, experts agree that the financial impact of the wildfires will be significant—though some believe the projections may be overblown, while others warn of long-term consequences for the city’s budget.
Chris Thornberg of Beacon Economics estimates that losses could reach $20 billion, factoring in infrastructure damage, fire suppression costs and insurance payouts for private homes.
However, 95% of single-family homes in L.A. County are insured, meaning most rebuilding costs for homeowners won’t fall on the city or county, Thornberg said.
“Yes, the city has budget problems, there’s no doubt about it. … But look, it’s a big city. They do have resources and surely there’s going to be some relief money coming from the state and the feds,” Thornberg said. “So I think it’s a little early at this point in time to suggest this is going to create a major disruption in the city finances.”
While Thornberg downplayed the long-term financial risk to the city, saying it has the resources to recover, other experts warn that the economic fallout could extend far beyond direct rebuilding costs.
“You have domino effects,” Lucio Soibelman, a professor of civil and environmental engineering at USC.
“We can imagine that if a restaurant is being demolished or burned down, it’s going to take two years to rebuild it,” Soibelman added. “It’s two years that that restaurant is not paying taxes, it’s two years that people that work at that restaurant are not working, it’s two years that the suppliers that would sell meat and vegetables to the restaurant are not selling. … It’s what you call a domino effect.”
He said that federal aid, particularly from FEMA, is crucial not just for rebuilding infrastructure, but for stabilizing the local economy.
“If this money doesn’t come, then the consequences of a fire like this would be terrible for the local economy,” he said.
If FEMA or the state doesn’t cover those costs—or if reimbursements are delayed—who ends up paying the bills?
“Everyone,” Soibelman said.
Pacific Palisades fire:
Total acreage burned: 23,707
Structures destroyed: 6,837 (homes: 5,419; commercial: 158)
Schools affected: 100
Churches affected: 13
Estimated cleanup and recovery costs: $358 million based on a preliminary city estimate
Timeline: EPA will complete hazardous debris removal process by end of February. Then the U.S. Army Corps of Engineers are expected to complete their debris removal within a year.
Eaton fire:
Total acreage burned: 14,021
Structures destroyed: 9,418 (homes: 6,011; commercial: 154)
Schools affected: At least seven schools severely damaged or destroyed, including five Pasadena Unified school campuses and at least two private schools: St. Mark’s School in Altadena and Pasadena Waldorf School.
Churches affected: at least 10
Estimated cleanup and recovery costs: unknown at this time
Timeline: EPA will complete hazardous debris removal process by end of February. Then the US Army Corps of Engineers are expected to complete their debris removal within a year.
ANAHEIM — It might not have been a work of art, but two vital points went into the standings rather than any museum, as the Ducks defeated the Nashville Predators, 2-1, on Friday night at Honda Center.
They moved to within six points of a wild-card playoff berth with the victory, while the Predators, now playing primarily for pride, were unable to extend their four-game winning streak.
Alex Killorn and Troy Terry scored for the Ducks. Lukáš Dostál held the hosts in a battle that saw them out-shot nearly two to one, with that proportion being even more lopsided at points in the third period, by halting 28 pucks.
Jakub Vrana scored Nashville’s only goal, and Juuse Saros had 13 saves.
“It’s a huge win because the boys really pulled together,” Dostál said. “Nashville had a push there. They’re an experienced team. They have veteran guys, but I think we held our ground. It’s important for the win and for the growth [of the team].”
A stalemate persisted for much of the evening, with transparent turning points late in the second period and in the middle of the third.
With 8:40 to play, Killorn’s 15th goal of the season came after Trevor Zegras threw an area pass into the slot, where Killorn criss-crossed with Drew Helleson, swooping on the puck and skating across the crease for the game-deciding goal, and a bit of redemption.
Leo Carlsson added a secondary assist on the goal, bringing his and Zegras’ scoring streaks to four games apiece.
“I thought Leo and Z got better in the third period, and they got rewarded with (Killorn’s) goal there,” Ducks coach Greg Cronin said.
The Ducks had been in a tie game after Killorn’s interference penalty gave Nashville a power play. Early on, Dostál made a resplendent save, once again managing to reach out and knock down a puck that was labeled to one post as he slid toward the other.
“I can’t not mention Dostál, he was unbelievable,” Terry said.
On that same power play, however, Nashville regrouped to knot up the contest at the 4:25 mark behind Vrana’s hard one-timer from inside the blue line, which hit Dostál but squibbled through him.
The Ducks spent another 2:50 shorthanded, including 1:10 with a two-man disadvantage, escaping unscathed and propelling them to Killorn’s late, tie-breaking goal.
“The five-on-three that we had to kill was either going to make or break us,” Cronin said. “It was a trigger to get us to play a little bit more on our toes. There was more energy on the bench and in the building after that.”
For almost 36 minutes of the match, there was no score and few events to speak of, but a short spurt late in the middle frame enlivened the action and left the Ducks up 1-0 at the second intermission.
Terry had been dangerous for much of the night, weaving to the net for chances of his own and creating for others, before he scored at the 15:52 mark of the second period. A minute later, all hell broke loose in the Ducks’ crease as they scrambled frantically to prevent a tying goal.
Mason McTavish and Terry applied forecheck pressure, with Vatrano recovering the puck and sliding it across to Terry at the left faceoff dot, where he launched a missile that found its target under the bar to the far side. It was Terry’s 18th goal of the season and second since Jan. 29, but it reminded the world how he was able to score 37 times in 2021-22.
“It felt good. I haven’t been short on chances,” Terry said. “When Frank got it, I knew their (defenseman) had broken his stick, so I just tried to get over to that weak side. I knew (Ryan Strome) was going to the back post, and once I saw the D slide, I tried to get it off before (the shot was blocked).”
The Predators nearly clawed that goal right back, but Jackson LaCombe was on his toes and Radko Gudas was on his back, his belly and whatever else had to touch the ice to keep the puck from reaching Dostál, who also made a save during the sequence and then nearly slid the puck into his own net.
“It was a lot of fuss, but I think the guys blocked every single one of them, so they helped me out pretty much there,” Dostál said.
Twenty minutes came and went without a goal, with the Ducks failing to capitalize on a pair of power-play opportunities. LaCombe showed off his skating on a breakout that saw him elude three Predators by himself, as well as his deception when he looked off a penalty killer to set up a one-timer for McTavish in the right circle. Dostál helped keep the period scoreles with a cat-like glove save on Michael Bunting.
“It was a strange game. There was not a lot of energy. There wasn’t a lot of ice. It was kind of a tight-checking game,” Cronin said. “They were throwing pucks out and we were trying to gap up, and it seemed to be a little of a tennis match in the first period. There was just no rhythm to it.”
The Ducks will take to the skies for a three-game journey that will open against Cam Fowler and the St. Louis Blues, before heading to Dallas and concluding against these same Predators.
DENVER — The nature of the NBA’s 82-game regular season naturally creates situations like the one the Lakers faced on Friday night against the Denver Nuggets.
On the road, down four of five starters. Without six of their top-eight rotation players. All during a stretch of six games in eight days, including three back-to-back sets, with Friday capping the first one.
When the Lakers’ injury report was released on Friday, which revealed that Luka Doncic, Dorian Finney-Smith and Gabe Vincent would join the list of the team’s unavailable players, the matchup against the Nuggets could have been viewed as a schedule loss.
The Lakers didn’t treat it that way.
Austin Reaves, Dalton Knecht and their teammates nearly pulled off an improbable victory at Ball Arena before falling to the Nuggets, 131-126, after Jamal Murray’s tiebreaking 3-pointer with 5.6 seconds left and Russell Westbrook’s exclamation point dunk that sealed the win for Denver (43-24).
“I’m proud of the group for their level of fight and resiliency,” Lakers coach JJ Redick said. “There’s a lot we could have done better. But the group competed and we gave ourselves a chance to win.”
Reaves (37 points, 13 assists, eight rebounds) and Knecht (32 points) led the short-handed Lakers (40-25), with both players making clutch plays down the stretch that kept the team in the game before eventually suffering their fourth straight loss to close an 0-4 trip.
“You always want to win,” Reaves said. “And regardless of who you take the floor with, we feel like we could win, and we went and put ourselves in a good position to do that. Losing sucks, but I’m happy with what these guys in the locker room did.”
With the Lakers trailing 124-123, Reaves stripped reigning league MVP Nikola Jokic for his third steal of the game and converted a layup on the other end to put the Lakers ahead by one with just over a minute left after they had trailed by 13 in the third.
Knecht helped add to that lead after a Murray turnover led to the rookie dunking in transition to put the visitors up by three – with Knecht cramping up on takeoff and taking a hard fall on his head/shoulders but staying in the game with the Lakers up 126-123 with 52 seconds left.
With little time to go over defensive plans during a timeout as Redick checked on Knecht after his fall, Jokic (28 points, seven rebounds, five assists, three steals) converted an and-1 floater over Christian Koloko, making the free throw to tie the score at 126 apiece with 48 seconds left.
“The play that Jokic got the and-one, I’ll take some ownership of that just because that was a short timeout and I ran on the floor to check on DK,” Redick said. “And then I ran back and I didn’t have time to really get us the right substitutions and matchups that I would have wanted. And that’s not a knock on CK, but I just kind of put him in a tough spot knowing that Jokic was going to go quick.”
After Reaves missed a jumper that would have put the Lakers up by two, Murray (26 points, five assists, four rebounds) sprung free out of a pick-and-roll with Jokic and knocked down a pull-up 3-pointer for a 129-126 Nuggets lead – just the latest big shot he has hit against the Lakers.
“[Jokic and I] were tangled up, trying to get up there when I saw Murray come up,” Knecht said of the play. “And CK told me to go out there and switch. It was kind of hard.”
Westbrook (17 points, seven assists, six rebounds) picked off Shake Milton’s inbounds pass on the Lakers’ ensuing possession, scoring the game-sealing basket.
After leading by 11 in the first and keeping the game close at halftime, trailing 71-67, the Lakers were on the cusp of being blown out before they used a 19-9 run to close the third quarter and cut a 13-point deficit to 102-99.
Knecht, starting near his hometown of Thornton, Colorado, had his highest-scoring game since mid-November.
“I told him in the huddle, I said, ‘Hey, if you want to shoot it, shoot it. I don’t care if you shoot it 35 times, we’re going to need every bucket you can get,’” Reaves said of Knecht. “So he’s a hooper.”
Milton (16 points, five rebounds, three assists) and two-way guard Jordan Goodwin (10 points, six rebounds) both scored in double figures for the Lakers with the increased playing time opportunities.
Koloko (eight points, seven rebounds) impressed with his second-half defense, altering multiple shots at the rim that didn’t end with blocks and denying Jokic the ball late.
“The spirit was great,” said Redick, whose team had an eight-game winning streak before this trip. “It’s been that and will continue to be that. And I think it was a good opportunity for a number of guys to play bigger minutes, Shake, in particular. Christian, defensively, in the second half was awesome. So happy for those guys that they played well.”
Despite feeling under the weather, Bronny James played 16 minutes and contributed five points.
LeBron James missed his third straight game with a left groin strain and returned to Los Angeles along with Rui Hachimura (left patellar tendinopathy) and Jaxson Hayes (bruised right knee) ahead of the Lakers’ game in Denver.
“We went 0-4, so it’s a pretty bad trip,” Reaves said. “But JJ said a week ago, ‘Everybody’s like Lakers in five.’ So we just don’t listen to any of it. We know when we’re fully healthy and got everybody on the team that we have a really good chance to beat anybody.
“I just see this group, coming together, locking in on one common goal and that’s to win. And [Friday] is the biggest testament to that. Very shorthanded and went and played a really good basketball team with probably the best player in the world. And went toe to toe and had an opportunity to win it. Just didn’t execute the last 50 seconds.”
Local News
Amalia Holguin dazzles but Sage Hill girls basketball falls to Carondelet in CIF state Division I final
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SACRAMENTO — It’s been just over five years since Kobe Bryant and eight others died in a tragic helicopter crash. It’s been nine months since four of Bryant’s proteges from his Mambas youth girls basketball team graduated from Sage Hill.
Yet, with his youngest apprentice — Amalia Holguin — still playing for the Lightning and coach Kerwin Walters still at the helm, the influence of the Lakers great remains immense.
“Kobe is always going to be straight in the heart for all of us,” Walters said this week, “especially for myself and Amalia. It’s just really, really a personal thing. But he’s always going to be there.”
Bryant’s vision for Sage Hill continued to unfold Friday night at the CIF State championships.
The Lightning aspired for a second state title in four seasons as they squared off against Carondelet in the Division I final at Golden 1 Center.
With Holguin wowing the crowd with her 3-point shooting and passing, Sage Hill brought the energy. Unfortunately, the Lightning struggled at the foul line, and it cost them.
Sage Hill made 4 of 14 free throws and fell to Carondelet 51-48 in its bid to become a two-time state champion.
Carondelet sank 8 of 11 foul shots, including all four of its chances in the final 45 seconds for the final points of the game.
Walters, in his 13th season, and Holguin, the youngest player on Bryant’s famed youth team, shared a long embrace after the final buzzer as the Cougars (30-6) celebrated their first state title since 2004.
“This one hurts,” said Walters, who led Sage Hill to the state Division II title in 2022. “They hit free throws, we didn’t. If you can see the numbers, that’s where it all falls right now.”
“It’s abnormal for us,” the coach added. “We’re generally in the low 70s, mid 70s in free throw percentage.”
Sage Hill (23-12) missed a 3-pointer in the closing seconds in a chance to force overtime
Holguin, a junior, hit two of her four 3-pointers in the fourth period en route to a game-high 21 points. While her long-range shooting impressed the crowd, so did her spin move and assist to Kamdyn Klamberg (13 points) to give Sage Hill a 48-47 lead with about one minute left.
The play came off one of Holguin’s four steals.
Sage Hill started two freshmen, a sophomore and two juniors.
“(Bryant) always wanted us to look in the mirror every day,” Holguin said. “I’m going to go home and probably watch some film on this and see how we can get better already for next year. … We’re always looking toward the future and I think we have a bright one.”
Carondelet led by as many as seven points in the first half before taking a 24-18 lead into intermission.
Holguin (10 points) and Klamberg (eight points) combined for all of the Lightning’s first-half points while seven players scored for Carondelet.
The Lightning received more contributions in the second half as freshman Addison Uphoff scored eight points and finished with six rebounds. Freshman center Eve Fowler scored four points to go along with four blocks and nine rebounds.
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