1. On May 13, 2025, the LA County Board of Supervisors will approve the issuance of $1.4 billion in short-term debt—called TRANs—to cover cash shortfalls in the County’s General Fund. That’s right. LA is borrowing just to pay its regular bills.

2. Why? Because property taxes and state/federal funds don’t arrive evenly throughout the year. The County gets a big chunk in December and April, but payroll, healthcare, and other services happen every week. So they borrow to keep the lights on.

3. These TRANs are tax-exempt short-term notes, paid back within the same fiscal year. But they still come with interest. Estimated cost to taxpayers? Around 4%, or $56 million in borrowing costs if fully issued. That’s a steep price for basic liquidity.

4. This isn’t new. LA County has issued TRANs every year since 1977. But here’s what’s alarming: •The amounts keep growing •Last year’s cap was ~$1.3B •This year? $1.4 BILLION That’s a sign of deteriorating fiscal timing or deeper cash flow issues.

5. Underwriters involved in the 2025–26 deal include: •Raymond James (lead) •J.P. Morgan (co-senior) •Up to 4 additional co-managers •Bond counsel: Orrick and Hawkins Delafield & Wood All paid through public funds.

6. While TRANs are “temporary,” they’re also a canary in the coal mine. If LA County ever can’t access short-term debt markets (like during a financial crisis), services could stop, workers go unpaid, and emergency borrowing becomes even more expensive.

7. And TRANs are just one of many borrowing tools LA County uses: •$1.4B TRANs = short-term cash •$25M Lease Bonds = equipment financing •$4B Judgment Bonds = child sex abuse settlements LA is quietly leveraging itself every year—outside voter view.

8. So the next time you hear politicians say LA has a “balanced budget,” ask this: If we’re balanced, why are we borrowing $1.4 billion every summer just to function? Because the answer reveals the truth about LA’s financial reality. More to come.