Strongtowns seems a bit motivated in their analysis, to put it mildly.
https://www.investopedia.com/terms/c/cashaccounting.asp
This looks at current costs. The school is a cost every year, so every year that cost shows up on the budget. The problem is that road/water/sewer maintenance often doesn't show up on these budgets because these systems are usually built all at once. Because of this they usually also need to be replaced all at once. To see those costs before they happen, you need to use accrual accounting:
https://www.investopedia.com/terms/a/accrualaccounting.asp
The entire message from Strong Towns is exactly that because cities often use cash accounting instead of accrual accounting in their budgetary processes these lingering issues of deferred maintenance don't show up until they do, and when they do, those costs will simply be too large for the city to cover without very politically unpopular interventions.
Strong Towns makes good arguments about certain things and are critical in a reasonable way of how civil engineering organizations rate the need for more civil engineering works. But the budget discussion makes zero sense.
The biggest expenses for county, city, town, village government are: schools, police & fire, Medicaid share in states that do that, and employee retirement and health. A small/midsize city spends 60% of its budget on police.
Capital projects are capitalized with bonds. Governments have the lowest bond expenses due to tax exemptions. Roadwork is not done in a cash basis. It’s bonded for 10-30 years depending on the job.
LA currently has about a billion dollars of outstanding general obligation bonds (edit: but that does not include all their future liabilities). They're still rated AA, but I presume that is because the credit writing agencies understand how many untapped revenue streams LA has, but again, those will require unpalatable political change. You can’t keep refinancing forever.
Philadelphia, Miami, and Chicago are getting close to junk bond status, and when that happens, the option to refinance starts evaporating very quickly.
My point is that much of what the city can tax has little to do with the city's GDP. Either the landscape of the city will have to change or the current taxation paradigm will have to change.
Again, putting $1B in some perspective, the LA Unified School District budget (which is county-level, so not directly comparable to the city, but anyway) is just under $19B. Maybe someone else can ballpark how much of that is associated to the city. Or look the other things that scale with population: police, medical, waste, social programs, etc.
LA is fine.
The city has a billion dollar deficit right now. Trivial for residents to afford ($83 per person), but difficult to actually implement politically.
If we cut the school budget only when we need to repave roads, we are playing fast and loose with our children’s future. When we set our budgets to be sustainable, we don’t rug pull parents who are trying to build a life in our cities.
Like I'm happy that my (suburban) city requires new developments to connect to a city-wide bike trail network. That's great. I just don't think Strong Towns/Not Just Bikes presents a realistic mental model of the world. They seem to clearly be pushing for a specific vision regardless of facts.
The cost of building a housing unit is rather out of control in LA right now, due to a number of factors. Some of those factors involve permitting, but some involve complexities of complying with building regulation, and there is also insufficient availability of contractors and insufficient availability of labor.
The point is that the vast majority of budgetary issues in LA could be solved by just legalizing, and streamlining the production of something as simple as three-story row housing like the kind that's normal in San Francisco (which has a surprisingly good long-term outlook despite their current budget woes).
It's not rocket science here. If you make it easy to build housing, the industry grow to meet demand. If you make it difficult, it will be dominated by a handful of major players who can navigate the process.
Inflation for materials and labor makes any build incredibly expensive.
But non-union construction is known to be unstable even outside construction's general boom-bust cycles and nobody is going to travel 1500 miles away without a contract guaranteeing they will have work/pay past the first 2 weeks. Too many workers have gotten burned being given great offers to travel for work only to get screwed over before they can recuperate their costs. Hell our own President is famous for screwing over construction companies and people just accept it as normal for the industry.
So the kernel of the argument is that 1) someone bought a single-family home and based on ground truth (property tax, cost of living, etc.) and 2) that property tax isn't sufficient to fund the city?
Can you really blame someone for not sacrificing his position under these circumstances? If I'm meeting my obligation, what do I stand to gain from leaving my house and moving into an apartment? That's saying "I need you to move so that someone else can take your property." It's not going to go over well.
A common zoning change here is based on street frontage for semi-detached homes - the new ones are still 3-4BR, just attached at the garage and with smaller yards. If development required 15m frontage, but then that changed to 12-13m, that would mobilise a lot of owners to take advantage, though obviously others can just stay as is if they prefer.
It usually happens that an $800k lot value becomes $1m, regardless of the state of the house. The owner can then demolish a decades old house, build two places for $600k, sell one as a new home for $800k-1m to finance the build (and costs of moving out during that phase), and end up in a new house themselves. Often they've sacrificed yard that they found annoying to maintain anyway.
The above can be adjusted where it's possible to build 3-4 on a block, or a larger development of apartments.
Zone changes typically allow change, not force it, surely? An owner can just keep their SFH and large yard if they prefer. What they can't always control and often vote against is the composition of their neighbourhood.
What? There is a structural deficit problem. The ship is sinking. Complaining about how "we shouldn't have to change anything about the ship" isn't really a reasonable argument. We live on this ship... we have every incentive to make sure it stays above water.
You might think there is option 4--municipal bankruptcy--but that is just option 2 and 3 combined.
Building buildings somewhere else will not fix your neighborhood.
I don't really think those are the only three choices, though. The government can fail and be replaced with a new one that will shape things up. Then it'll be replaced by another that thinks it's too big and well off to fail, squander it, and fail. That's the typical cycle.