About 130 officers will be taken off desk jobs and specialized divisions and be reassigned to patrol the streets.
"I think it's important to recognize that especially in lean fiscal times, we have to put our high-dollar positions where they serve the public," Chief Charlie Beck told police commissioners. "There's really not a lot of leeway right now."
Beck said the 120 transfers are just "the first wave."
Noting that the Los Angeles Police Department has an $80.3 million deficit this fiscal year, Beck plans to consolidate resources, avoid replicating services and track spending to "adjust to fiscal realities."
He said the LAPD ranks may "ebb and flow" because the new contract with the Los Angeles Police Protective League will replace overtime pay with time off.
Meanwhile, the City Council is considering suspending enrollment at the Police Academy, and restricting promotions.
"I'm going to be short in the field as we're not able to promote and as we're forced to give people time off in exchange for overtime work," Beck said. "It's going to be a reality that the operational areas are going to need more resources, and those can only come from one place, and that's the specialized divisions."
Beck has tasked Deputy Chief Michael Moore, whom he promoted to take charge of the Office of Special Services, to identify ways to use manpower more efficiently. Moore's command includes detective bureau, counterterrorism, criminal intelligence and special operations -- altogether comprising about 2,500 personnel.
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In the reorganization, Beck also created the position of Special Assistant for Constitutional Policing for Gerald Chaleff -- a civilian and former Police Commission president whose rank will be equal to deputy chief. His tasks will include tracking the LAPD's spending and make sure audit recommendations are enforced.
One of Beck's immediate cost-cutting measures was to reduce the ranks by two captains, saving $200,000.