Mayor Karen Bass Monday touted progress in the dual housing and homelessness crises in the city and the record pace of rebuilding fire-devastated Pacific Palisades, but she also announced in her State of the City Address that she’s proposing municipal employee layoffs to help eliminate a nearly $1 billion budget deficit.

Her proposal comes amid a slumping economy and an ongoing homeless crisis, while the city contends with the costly job of rebuilding a seaside neighborhood leveled in a January wildfire.