Los Angeles k-12 system faces potential insolvency as officials warn district could run out of money within year

Leanne Suter

County officials said LAUSD is projected to be more than $230 million in the hole by November of next year. In response, the county superintendent has appointed a fiscal expert and given the school board 45 days to fix its budget.

“I think it might actually be a good thing to have a, sort of like a neutral pair of eyes on the LAUSD budget,” said Nicolle Fefferman, co-founder of Parents Supporting Teachers.

Officials cited massive union contracts estimated to cost more than $1 billion annually, along with declining enrollment and reduced state funding, as factors contributing to a growing deficit and the possibility of state oversight.

“Worst case scenario is the state takes over and this goes under receivership under the state, and that takes a long time to get out of and it is really hard to maintain any control over curriculum, over class size,” Bacall said.

New LAUSD Superintendent Andrés Chait sought to reassure families and staff, saying in a statement: “We welcome the opportunity to collaborate and remain focused on making thoughtful, responsible decisions that protect classroom instruction and student success.”

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More.

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It is rather interesting that the District’s budget page begins with deficit data. The first total $pending number displayed is stale: $18,800,000,000 for 2023-2024…. and this post is written in July, 2026. That yields $34,213 per student where Madison is currently $28,236.

The District mentions 549,487 students in a “fingertip facts” document along with 83,307 employees. That is one per 6.59 students, nearly double Madison!

Curiosly, the “fingertip facts” document only mentions part of the k-12 District’s budget.


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