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Education

With costs rising and relief money gone, LAUSD taps reserves to pay for new budget

A man in a suit, with graying hair and medium skin tone, stands with his hands clasped, as a group of adults huddles near him.
Superintendent of Los Angeles Unified School District Alberto Carvalho, right.
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Brian van der Brug
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Los Angeles Times via Getty Images
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The Los Angeles Unified board unanimously approved a $18.8 billion budget that relies on diminishing reserves to make ends meet.

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LAUSD approves $18.8 billion budget, braces for future cuts

“There is a tempest ahead, uncertainty, instability, a threat to public education as we know it,” Superintendent Alberto Carvalho said as he gave updates to the district’s financial plan Tuesday. “But this budget reflects your values, your beliefs, your principles and I believe strongly that it also reflects budget practices that strike a balance between the immediate need and the longer-term reality our district faces.”

California funds schools based on how many students show up to class each day. Enrollment is declining throughout the state, particularly in areas with high costs of living. About 408,000 students attended LAUSD this past school year, a more than 40% decline from enrollment two decades ago.

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How bad is the fiscal outlook?

LAUSD is spending more money than it brings in. The district will pull from its reserves for a second year to make up a nearly $3 billion deficit.

It has not closed schools or significantly reduced staff as costs have increased and billions of dollars of federal pandemic relief money ran out.

That’s a different approach than other local districts. Pasadena and Santa Ana Unified, for instance, announced plans this year to lay off hundreds of staff before next school year.

California law requires districts to create a “fiscal stabilization plan” if they’re at risk of not meeting their financial obligations. LAUSD’s board approved a plan last week that includes the possibility of school closures, layoffs of non-school-based staff, and cutting how much money individual schools can carry over in their budgets from year to year.

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Facing a major financial strain, what's next for Los Angeles Unified schools?
Senior reporter Mariana Dale joins LAist's public affairs show AirTalk to discuss the district's new budget and financial preparation for future cuts.

What is the district spending more money on?

District staff highlighted increased funding for several programs next school year:

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The district’s budget does not account for several factors:

Have more questions?

If you want to know how the district budget or fiscal stabilization plan might affect your school, you can reach out to your school board member.

Find Your LAUSD Board Member

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