Los Angeles and New York have unique socio-economic and demographic conditions that can affect the overall budgets of the cities. The city of New York’s population was estimated at 8.336 million people in 2019, whereby the male population was 48 percent while the female population was 52 percent (City Data, 2023, a). The population’s median age was 39.2 years, meaning its residents are relatively young. (City Data, 2023, a). The city’s unemployment rate is higher than the rate of unemployment in New York state, which impacts revenues for the city budget. The median household income for residents of New York City in 2019 was $69,407, which was lower than the average $72,108 median income for all residents of New York state (City Data, 2023, a). Further, the figures show that 16 percent of residents live in poverty (City Data, 2023, a). This could potentially impact the city budget because funds have to be allocated for the social welfare of the people living in poverty.
On the other hand, Los Angeles has a significantly smaller population. Three million nine hundred seventy-nine thousand five hundred seventy-six people live in Los Angeles, with females making up 51 percent of the population while males comprise 49 percent of the population (City Data, 2023, b). Additionally, the median age of the residents is 35.9 years, while the median age in California is 37 years, according to the 2019 figures (City Data, 2023, b). The estimated household income for the city residents is $67,418 against $80,480 for residents of California state and a per capita income of $37,779 (City Data, 2023, b). On average, residents from Los Angeles state earn more than the national average. However, they earn less than other residents of the state, which would negatively affect the city budget because lower earnings translate to low tax revenues collected. However, a higher cost of living negates any benefits derived from higher income per household.
The racial composition in New York City is dominated by Whites, while the population in Los Angeles city is mostly Hispanics. They comprise 48.2 percent of the population (City Data, 2023, b). The city has more than 12,000 law enforcement officers, which translates into 2.49 officers for every 1000 people against the California state average of 2.01 (City Data, 2023, b). This disparity could negatively impact budgeting as additional allocations must be made to bring the police-resident ratio to par with other regions in California. Unemployment by November 2020 stood at 10.5 percent against the state average of 7.5 percent (City Data, 2023, b). High unemployment figures negatively affect the city’s budget because fewer people are actively engaged in economic activities.
The distribution of the budgets of both cities should pay more attention to the development of the social sector. The main principle in allocating the budget should be proven necessary (Lee, 2020). In New York, a significant part of people below the poverty line is revealed, and it is necessary to provide them with suitable living conditions. In Los Angeles, there is a discrepancy between the income of the population and housing prices. The budget of both cities should allocate additional funds for benefits to citizens. The relatively young population of both cities is suitable for more active involvement in the economic sphere of life, so it is necessary to allocate funds for additional education of citizens. This can be achieved by slightly reducing police spending since the number of police officers per capita in these cities is much higher than necessary.
References
City Data (2023b). Los Angeles – California. City-Data, Web.
City Data (2023a). New York City – New York. City-Data, Web.
Lee, T. A. (Ed.). (2020). The Evolution of Audit Thought and Practice (vol. 18). Routledge.