The Brief

An answer to Long Beach’s ongoing budget woes may be buried under dust in Sacramento.

The Long Beach City Council is in a mad dash to bring the state to the negotiating table over a decades-old contract that establishes the revenue split from the Wilmington Oil Field in and around the coastline, saying the current agreement has been a cash gusher for the state.

City officials say time is of the essence, as the legislative cycle ends next week and any items not brought forward could be tabled until at least January.

It’s an item that would restructure how much the city receives for its guardianship over what’s known as its tidelands area, a 24-square-mile swath of ocean and coastline from the Orange County line through downtown Long Beach to the ports of Los Angeles and Long Beach. The field goes about as far north as Ocean Boulevard, almost reaching the breakwater to the south, and encompasses some of Long Beach’s most precious assets: the beaches, marinas, and Convention Center.

Since 1991, the city has received 8.5% of revenues earned through oil and dry gas production in the tidelands area, pulling from the Long Beach section of the Wilmington Oil Field. Another 49% goes to the oil operator while the state takes 42.5%.

But it’s a deal that no longer makes sense, according to Long Beach Councilmember Kristina Duggan, who said Friday a reasonable city share rests between 20% and 30% of the revenue.

The city is under mounting pressure to transition its economy away from a reliance on local oil production, which is set for a dramatic decline — $300 million over the next 10 years, according to City Auditor Laura Doud. Meanwhile, the city has $1 billion in outstanding coastal projects, from a deteriorating Naples Island seawall to costly upgrades at the Convention Center.

Facing the rising cost of upkeep along the coastline, the city is expected to spend more than it earns to oversee the tidelands for the first time in 2026. Officials project future deficits through 2035 will range between $6.2 million and $10 million.

As a result, city leaders may have to divert money from other core programs and services.

“What are we going to take away? Are we going to take away our libraries? Are we going to take away our staffing at parks? Where are we going to get the money when we are using funds from the general fund to take care of every district?” Duggan said.

Meanwhile, the state expects to reap $271 million from the tidelands through 2035, according to Duggan’s office.

Oil in Long Beach has a long, intricate history, pieced together through multi-party contracts and court hearings over who is most deserving of the gushing revenues and by how much.

Oil was discovered in 1932 and was estimated to total 9.5 billion gallons' worth. In the years prior to 1955, Long Beach was awash in cash, keeping most of the oil revenue for its general fund.

Citing a trust arrangement set in 1911, the California Supreme Court in 1955 named the state as the main beneficiary, since the oil was extracted from state land beneath the water. The state declared most of the money generated from oil production as surplus and began redirecting it to Sacramento, based on the conditions when the coast had fewer needs and oil production was much higher.

Under the expectation that oil would either soon dry up or be phased out, the city agreed to a funding formula in 1964 that fixed its revenue at $1 million a year. The change in 1991 bumped the city’s yield to its current rate, which now brings in around $50 million annually. The city receives tax revenue from 2,762 active and idle oil wells that are managed by 14 oil operators.

But the current formula is out of step with reality, Duggan said, adding that the state has taken $5.75 billion from Long Beach under this formula as “surplus.”

“Our increase in responsibilities and costs is escalating far, far greater than what we can keep up with,” she said.

It’s the “No. 1 priority this next year” in state lobbying, said Mayor Rex Richardson on Tuesday. The mayor has for years lobbied the state to allow Long Beach to divert interest from a fund meant to cover the costs of decommissioning defunct oil wells, of which the city has invested millions.

“We’re going to go back to Sacramento and put options on the table,” Richardson said. “But the reality is … doing nothing is not an option for us.”

In a joint call with the governor’s office last week, Richardson reiterated his request for diverting interest from the oil decommissioning fund, while Duggan spoke on renegotiating the funding formula.

While Newsom’s office seemed open to both ideas, according to Duggan, each needed to be championed by Long Beach’s state representatives — state Sen. Lena Gonzalez and Assemblyman Josh Lowenthal.

“We need them to carry this,” Duggan said. “And we have two weeks to get some sort of traction with legislation. That’s the only way to make it happen.”

In a statement Friday, a spokesperson from Lowenthal’s office said the assemblyman looks forward to “discussing potential ideas with the city of Long Beach and the Long Beach legislative delegation.”

“With California now facing a major budget shortfall, we’ve had to make tough choices to protect vital services while keeping the budget balanced,” the statement read. “Any sudden changes to that balance could have real consequences here at home. While the city has and continues to be a good steward of the state’s tidelands — any discussions surrounding the fund’s future must be well informed, conducted responsibly, and be in the best interests of the entire state of California and the residents of the city of Long Beach in order to uphold the public trust.”

As the federal investigation related to Los Angeles Unified’s superintendent continues, the district’s acting leader and the elected board face key decisions about the district’s finances and negotiations with unions poised to strike.

This on top of the day-to-day tasks of running a school district that employs 83,000 people and enrolls more than 400,000 students across more than 1,000 schools.

“This removal of [Superintendent Alberto] Carvalho, which is understandable under the circumstances, comes at the very worst time for the system,” said Pedro Noguera, dean of USC’s Rossier School of Education.

LAUSD’s board voted unanimously to place Carvalho on paid administrative leave two days after FBI agents searched his home and office in late February. The reason for the searches is unknown. A DOJ spokesperson said the agency has a court-authorized warrant but declined to provide additional details.

While Carvalho has declared his innocence and expressed a desire to return to his job, the district says an investigation is ongoing.

Which means, for now, longtime administrator Andres Chait will continue leading the country’s second largest school district through a series of pressing challenges.

What does an acting superintendent do?

This is not the first time in recent history an acting superintendent has led LAUSD.

Vivian Ekchian stepped in to lead the district in 2017 when then-Superintendent Michelle King was out on medical leave; King stepped down altogether the following year. Ekchian previously served as associate superintendent and, before that, an elementary school teacher, principal, administrator and chief labor negotiator.

“The role of the acting superintendent, from my perspective, is not different from the actual superintendency,” Ekchian said. “The work needs to get done, and it doesn't stop.”

When asked about the acting superintendent’s decision-making power compared to the permanent position, a district spokesperson wrote in a statement that “acting superintendent is a board-appointed position and carries all responsibilities and authority afforded the position of district superintendent.”

Ekchian said the superintendent’s decisions are guided by the district’s existing strategic plan, consultation with other senior leaders and community partners.

“If there's an urgent matter, like a fire or something that requires immediate decision-making, systems and structures are in place for organizations and departments to know what to do next with immediate guidance from the superintendent,” Ekchian said.  ”All decisions aren't the same, and the urgency is dictated by the matter at hand.”

Like Ekchian, Chait rose through the ranks from teacher to administrator at LAUSD over nearly three decades.

The responsibilities of his most recent role, chief of school operations, included overseeing school safety, athletics and the district’s office of emergency management. The salary for the chief of school operations position is $278,205 annually (the district did not indicate whether his salary has changed).

Since being named acting superintendent, Chait has appeared on the district’s social media, but the district has declined to make him available to LAist or other media outlets for interviews.

In his first verbal statement to the public on Monday, March 2 before a closed board meeting, Chait said his priority as acting superintendent is to keep the district focused.

“We remain committed to academic excellence and student wellbeing,” he said. “Our core values remain unchanged. I know transitions can create uncertainty, but our district is strong.”

Mounting pressure from labor

On Tuesday, the board approved labor agreements with the unions representing school police, support staff supervisors, office personnel and other classified staff.

But contract negotiations with the district's largest unions, those that represent teachers and school support staff, have stalled. Members of both United Teachers Los Angeles and SEIU Local 99 voted overwhelmingly in January to give their leaders the power to call a strike.

An IT worker and a gardener, both in positions targeted for reductions, were among the union members that addressed the LAUSD board.

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“ A strike is always the last resort,” said Maria Nichols, president of Associated Administrators of Los Angeles, the union representing principals, on Tuesday. “None of us — AALA/Teamsters, UTLA, SEIU — want to go on a strike and be disruptive for our students, our families, our school communities, especially at a time when LAUSD is already navigating uncertainty.”

More than a hundred school support staff and other union members filled the chambers Tuesday as Nichols and other representatives addressed the board.

Alex Orozco, UTLA’s secondary vice president, told the board that negotiations were “not anywhere close” to being settled. (The following day, the union announced the most recent step of negotiations, “fact-finding,” ended without an agreement.)

In past negotiations, the district’s superintendent has been a lightning rod for the union’s criticisms. In 2018, for example, UTLA weaponized then-Superintendent Austin Beutner’s calendar ahead of a strike.

The unions’ approach to Chait has been restrained so far.

“ The problem our members are facing, and students, is a systemic issue. It's not an individual,” said Max Arias, executive director of SEIU Local 99, in an interview with LAist. “We have to continue to attack the system, but I'm trying to hold out some hope that [the acting] superintendent will, you know, understand what we need to get done.”

The unions plan to hold a rally in downtown Los Angeles on Wednesday.

At Tuesday’s board meeting, Chait described a first week on the job spent visiting with teachers, principals, students, support staff and labor partners.

“As someone who's been a teacher, principal, held a number of roles in the district, I understand that you are indeed the backbone of this district,” Chait said. “The work simply just does not happen at schools or at offices without you. My commitment to you is to always come from a place of transparency, honesty and dialogue.”

Cutting back on spending

Part of the labor negotiation challenges are related to the district’s financial constraints. In February, a divided board voted to send layoff notices to more than 650 employees as part of a plan to cut spending.

Even as California is poised to fund schools at record high levels, Los Angeles Unified and other districts have grappled with increased costs.

For example, LAUSD hired more staff to support students during the pandemic, and now the federal relief dollars that initially funded those positions are gone. For the last two years, the district has relied on reserves to backfill a multi-billion-dollar deficit.

Noguera, with USC, said the budget is the district’s most immediate priority.

“There's no easy solutions,” he said, “and I think that's part of the reason why they've held off for a while on making tough decisions.”

The financial report presented Tuesday indicates that the district will continue to spend more money than it brings in over the next three years. Still to be determined are how the outstanding labor negotiations and the state budget will affect LAUSD’s spending plan for next year.

Defending immigrant families

Since the start of President Donald Trump’s second term, Los Angeles educators — and those around the country— have said the increase in immigration enforcement actions contributed to lower attendance and fewer students enrolled in school this year.

Thousands of Los Angeles Unified students have walked out in recent months to protest the Trump administration’s militarized crackdown on immigrants, detainment of children and violence against U.S. citizens protesting the raids.

Thousands of students from schools across Los Angeles walked out Wednesday, Feb 4, 2026 in peaceful protest of the Trump Administration’s immigration policies.

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In response, the district has expanded summer school and transportation options, distributed “know your rights” information and asked the federal government not to conduct immigration enforcement actions near schools. Teachers and community organizations have also volunteered to patrol schools before and after school.

On Tuesday, the board instructed staff to review contracts with outside vendors and evaluate whether they support or enable immigration enforcement and detention.

Chait, whose own family immigrated from Chile in 1983, said the district’s work to support immigrant families will not change during his tenure.

“Please know we stand with you,” Chait said Tuesday. “We will support you. We will ensure that our campuses are safe, secure and welcoming environments for our students and staff.”

A theater project bringing the world of William Shakespeare to local veterans is gearing up for its first public performance on Sunday.

For the past year, a group of about a dozen veterans have met at the West Los Angeles VA campus to study the work of the Bard of Avon.

The project is a partnership between the Shakespeare Center of Los Angeles and The Veterans Collective. The group is led by trained theater artist — and fellow veteran — Aaron Lyons.

Lyons is a longtime staple of L.A.’s theater community and is a member of the Antaeus Theatre Company. He said seeing this group express themselves through these timeless works has been inspiring.

“Helping them grasp Shakespeare, not only intellectually but emotionally, has been one of the most uplifting experiences of my life,” Lyons said.

Ranging in age from their 30s to their 70s, the group includes veterans of the Vietnam War and most of its members live at the West LA VA Campus, Lyons said.

The actor, who’s performed in more than half of Shakespeare’s plays, said part of his goal with the project was to demystify Shakespeare’s canon for veterans who might not have studied it since grade school.

“Watching this group of men and women understand it and be able to connect with it in ways that they didn’t think possible was really, really inspiring,” Lyons said.

The group will perform an original work called “Shakespeare Night Live” at 3 p.m. Sunday, March 15, at McCadden Place Theatre. The performance weaves through several Shakespearian monologues and scenes.

Tickets are $10 and available at the Shakespeare Center of Los Angeles website.

The war in Iran is rattling the aviation industry, from flight cancellations to rising costs for jet fuel. So if you're planning to travel this spring or summer, should you grab a ticket now, or wait?

"You should go ahead and book," says Sean Cudahy, an aviation reporter at The Points Guy travel and personal finance website.

It's generally recommended to buy international flights further in advance than domestic trips. But in the current circumstances, Cudahy says he would go ahead and book even domestic flights.

His advice is a sign of how the Middle East conflict is rippling outward, affecting prices and itineraries around the world, beyond the thousands of travelers who were stuck after the war forced a barrage of flight cancellations.

Airlines warn that ticket prices will rise with fuel costs

The war's effect on travel was sudden and striking, resulting in the cancellation of more than 46,000 flights in and out of the Middle East from Feb. 28 — when the U.S. and Israel began bombing Iran — to March 11, according to Cirium, the aviation analytics company.

That includes Dubai International, the busiest airport in the world for international travel, according to Airports Council International, along with popular hubs in Doha and Abu Dhabi.

But even airlines far from the Mideast are facing a sudden surge in a core expense: jet fuel. At the beginning of the year, a gallon of jet fuel cost $2.11; by March 10, the price rose to $3.40, according to the Argus U.S. Jet Fuel Index, a gain of more than 60%.

The spike came after tanker traffic through the Strait of Hormuz came to a virtual halt, as Iran announced it would close the waterway that normally handles about 20% of the world's oil and liquified natural gas.

Mideast refineries had been sending some 470,000 barrels of jet fuel each day through the strait to airports in Europe and elsewhere, says Rick Joswick, who heads the near-term oil analytics team at S&P Global.

The price for a gallon of jet fuel soared close to $4 in the first week of the war, prompting United Airlines CEO Scott Kirby to say on Friday that airfare price hikes from higher fuel costs would "probably start quick."

As they absorb higher fuel costs, airlines could adjust prices higher across the board, or they might tuck an increase into premium fares, where they'll be less noticeable, Cudahy of The Points Guy says.

Several airlines have publicly confirmed that they'll be raising prices to compensate, as Reuters reports. Other carriers, such as Japan Airlines, publish a schedule of fuel surcharges triggered by cost increases.

"I do think that this is ultimately going to lead to higher fares for everyone," Cudahy says. "The only question now is how significant and how long does it last?"

Air travelers stranded by the Iran conflict are greeted in Athens, Greece, after arriving on a charter flight from Dubai on Saturday.

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Crisis parallels earlier global disruptions

The higher fuel prices reflect a genuine struggle to ensure the aviation industry has ample supplies, says Joswick.

"It's not irrational. It's not some trader bidding up prices," he says. Comparing the situation to the COVID-19 pandemic, he adds, "The consumption of toilet paper didn't change. But you notice that all of the supermarkets ran out of toilet paper, right? Everyone wants to be sure that they have coverage of a critical need."

Both Cudahy and Joswick compare the Iran conflict's ripple effects to Russia launching its full-scale invasion of Ukraine in 2022, which set off flight disruptions and higher fuel prices. As long as the Strait of Hormuz is closed, Joswick says, prices will keep rising.

"If that were to persist, this would be like a 1979 kind of [oil] crisis," he says. "Anything over a month, and you're seeing a substantial long-term price increase until the flows are restored."

The U.S. and other large economies can mitigate those effects by tapping strategic oil reserves — which they opted to do on Wednesday. But Joswick predicts that while such a move can help ensure adequate oil supplies, it might not bring a sharp drop in jet fuel prices. For one thing, he says, the U.S. reserve focuses on holding crude oil, not jet fuel. And he cites logistical challenges, such as California's reliance on jet fuel that it either produces or imports.

Tips for buying a plane ticket right now

If you're ready to take your chances and book a flight, Cudahy has some guidance.

First, don't buy a restricted, basic economy ticket that you can't change later, he says.

Instead, he recommends buying a regular, full-fare economy ticket: "If the price does eventually drop, you can then go back and change it and capture the lower price."

Another tactic, Cudahy says, is to use airline miles.

"You can generally cancel it and get all your miles back later, if the price goes down," he says.

Use services such as Google Flights to comparison shop and set up alerts for price changes. And if you book flights through a third-party site such as Expedia, be sure you understand its cancellation and change policies, in case they differ from the airlines.

Because of the chance for renewed hostilities in and around Iran, Cudahy says he would try to avoid nearby airline hubs for the next couple of months.

But he wouldn't wait to book a ticket.

"In the same way that we're seeing relatively long lines at gas stations with folks trying to get their tanks filled up before the price goes up even more than it already has, I would be thinking the same way when it comes to airfare right now," he says.

While you might drive an extra mile or two to find cheaper gas, airlines and airports don't have that luxury when they buy jet fuel.

"Prices are always set on the margin," Joswick says. "That last airport that needs to buy jet fuel, they will pay whatever it takes to get that. And that price then becomes the standard for the whole industry."
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