On Tuesday, the Los Angeles School Board is expected to vote for its $18.8 billion spending plan for the upcoming academic year.
Meanwhile, union leaders and activists are hoping for more from district reserves that still contain billions of dollars. This is evidence that LA Unified can pay higher wages and spend more to strengthen its programs for black students and immigration.
The budget proposed last week would spend about $400 million more than the 2024-25 school year, but about $200 million less than the previous year when the school system was washed away with one-off state and federal pandemic aid.
For parents and workers, the big picture is that next year’s Unified LA Services and staffing are very similar to the year just finished.
– Better outlook than some districts, such as San Francisco Unification and Oakland Unification. However, LA officials said the “planned year” of finances will focus on identifying future cuts.
Next year’s revenue is currently calculated at $15.9 billion, nearly $3 billion less than what the district is planning to spend. The district continues to cut its ending balance of around $7 billion last year, and now it is around $4.8 billion.
By the end of 2027-28, there will be no cuts and the district will be financially underwater, officials say.
Red expenditure outlook requires state law to require the school board to approve the “Financial Stabilization Plan” and send it to the LA County Education Department.
However, district workers are also facing economic pressure. They want a salary increase and saved health benefits. The district provided a 2% salary increase for one of the largest unions. That 2% offer has not yet been incorporated into the district’s budget forecast.
How did La Unified avoid the layoffs?
Like other school systems, La Unified had to deal with the end of the pandemic relief assistance that it had paid for additional staff and recovery programs.
Among the more unified factors than other school systems was a nearly $500 million boost from the Biden administration. This was a refund for a comprehensive and costly Covid-19 testing programme that other school systems had not undertaken.
Moreover, LA Unified never hired hundreds, perhaps thousands, of people they wanted to bring in through pandemic relief assistance, including mental health workers, nurses and counselors, due to the shortages, primarily in these high-demand areas.
The state has helped by slowing down the financial hit of low students. LA Unified, like many school systems, has seen a decline in registration, which ultimately leads to a decline in funding.
What’s been cut?
The official says services to students have not been cut, and full-time workers have not lost employment and benefits. This is not about the 2026-27 academic year.
Other school districts aren’t that lucky.
Santa Ana Unified School has approved 262 layoffs, including teachers, counselors and other staff. The district has experienced a 28% registry decline over the past decade and has had to face a budget deficit of $154 million.
Other districts with layoffs include Berkeley Unification, Pasadena Unification, Coachella Valley Unification and San Ramon Valley Unification. Still, other school systems had a sharp cut in budgets last year.
In the case of a unified LA, the purpose is to commence July 1, 2026. Schools can lose workers – a possible example is a teacher’s aide or supervisory aide if individual schools are limited by their own budgetary constraints. These workers were funded by a central office. This is expected to save at least $60 million a year.
Up to 10 schools, or at least inadequate buildings on various campuses, will be closed, saving $30 million a year. Reduced Central and regional offices are expected to save $325 million over two years.
The projected budget cuts will be $1.6 billion over two years. This is not enough to end deficit spending, but it will keep the district out of the red for three years. This is everything state law requires.
What has the biggest negative impact on your budget?
LA Unified hired full-time employees with over $5 billion in one-off Covid-19 relief funds. Without additional funds, workers will be fired. There was no specific discussion about which workers would lose their jobs, but Supt. Alberto Carvalho said the goal is to stay as far away as possible from the classroom.
The major and little calculated costs last year were payments related to sexual misconduct claims dating back to the 1940s. Last year alone, LA Unified paid more than $300 million in bills. These claims will be funded through special bonds to extend the financial burden over 15 years, but costs can still be over $50 million per year.
A decrease in registration means a decrease in state funding. At the same time, many costs are rising.
This year, the district had around 408,083 students from transitional kindergarten through 12th grade. The number is expected to be around 396,070 for next year, and the following year is around 385,091.
The school system has also approved a larger wage package for employees than many other districts. Another cost is a health benefit for unsupplied retirees. There are over 35,000 district retirees eligible for retirement benefits. For example, between 2023 and 24, these costs reached approximately $331.8 million.
Which educational programs will give you the most support?
Budgets are complex documents, with source flows and depletions with a variety of spending rules. Thus, while primary schools with declining enrollment struggle to protect all teachers, funding for after-school programs and field trips has been significantly expanded compared to 10 years ago.
However, mostly, district priorities and spending are fairly consistent.
During this period, the Board of Education is under tremendous pay pressure from the union. No employee group is satisfied with the 2% wage increase offer.
On the left, Max Arias, executive director of Local 99 Employees International Union, speaks to members and supporters outside the district’s headquarters after calling on the board to provide better contracted terns, including higher pay proposals.
(Howard Bloom/Los Angeles Times)
Local 99 at Services Employing International Union says the district is out of control by keeping many employees under four hours a day. Once workers reach four hours a day they are eligible for health benefits. United teacher Los Angeles says early career teachers need a massive pay hike.
The coalition of supporters wants more money targeted at the schools with the highest needs, even when other schools have little money. District spending is already working this way, but supporters say the current distribution is not progressing well.
The union of teachers’ unions and allies is particularly leaning towards elected school board members, seeking an agenda of immigrant pro-black students.
Last week, Carvalho tried to appease them and his board of directors in an effort to fund a one-off, one-off boost to Black Student Achievements Plan, BSAP, between 2025 and 26, to appease them and his board of directors. BSAP offers additional psychiatric social workers and academic counselors, among other enhancements.
Under an agreement with the Biden administration, the benefits of BSAP should be available not only to black students, but to all students with similar needs. Some activists hope that the district will bring BSAP back to a black-only focus.
Immigrant families are expected to benefit from the $4 million student center, which can include legal referrals and other family support. Activists want more.
Although there is already a substantial budget to make the campus greener, Carvalho has agreed to add $1 million a year over the next three years.
So far, Carvalho’s budget movements have been met with uneven support from school board members. This is the majority of the four voted last week to approve the financial stabilization plan.
What are the prolonged conflicts?
Former LA Schools Supt. Austin Beatner leads a group calling for La Unification, accusing voter-approved proposal 28.
Infusions for art instruction were to begin between 2023 and 24. Under the rules, new money had to be added to the funding of arts instruction, in addition to what the school had already provided. However, unified parents and staff in LA noticed that the level of art instruction in many schools has not changed.
Under pressure, Carvalho has secured more money for the art – and he also said he is adding more proposed budgets.
Critics aren’t satisfied – and said the district is likely to have to return millions of dollars of arts funds to the state.
District officials argue that the use of art money is legal and appropriate.
Separately, a group of students, parents and union activists continue to seek the removal of school police.
What will the future look like?
Projecting three years ago, there is a lot of uncertainty required, including potential cuts from Trump and Republican-controlled Congress.
Trump’s proposed education budget shows cuts that will affect LA unification. At-risk programs or grants include those for teacher training and those that help students who are learning English, those who are children of immigrant workers, or those who are experiencing homelessness. The district has set aside $46 million for that possibility.
A revived state economy could eliminate the need for cuts. But at this point, the state’s budget appears to be heading in the wrong direction.
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