LAUSD confronts looming fiscal crisis in debate over $18.8-billion budget
The Los Angeles Board of Education on Tuesday is slated to vote on an $18.8-billion spending plan for the next school year that officials say will keep cuts and layoffs at bay for exactly one more year.
Union leaders and activists, meanwhile, want more from a district reserve that still contains several billion dollars. This is evidence, they say, that L.A. Unified can pay higher wages and spend more to enhance programs for Black students and immigrants — efforts that defy President Trump's push to end programs that promote racial or ethnic diversity.
The budget proposed last week would spend about $400 million more than the 2024-25 academic year — but about $200 million less than the year before that — when school systems were flush with one-time state and federal pandemic aid.
For parents and workers, the big picture is that L.A. Unified services and staffing for next year will look a lot like the year that just ended — a better outlook than in some districts, including San Francisco Unified and Oakland Unified. However, L.A. officials said the fiscal 'planning year' ahead will focus on identifying future cuts.
Revenue next year is currently calculated at $15.9 billion, nearly $3 billion less than what the district plans to spend. The district will continue to draw down an ending balance that stood at nearly $7 billion last year and now stands at about $4.8 billion.
Absent cuts, by the end of 2027-28, the district will be financially underwater, officials say.
With a spending outlook in the red, state law requires the Board of Education to approve a 'fiscal stabilization plan' and send it to the L.A. County Office of Education, which is responsible for oversight to keep school systems from going bankrupt.
But the district's workers also face financial pressures. They want raises and preserved health benefits. The district has offered a 2% raise to one of its largest unions, which union leaders say is not nearly enough. That 2% offer has not yet been incorporated into the district's budget projection.
Just like other school systems, L.A. Unified has had to deal with the end of pandemic relief aid that was paying for added staff and recovery programs.
Among the factors that helped L.A. Unified more than other school systems was a nearly $500-million boost to L.A. from the Biden administration. This was reimbursement for a comprehensive and costly COVID-19 testing program that other school systems did not undertake.
In addition, L.A. Unified never hired hundreds, maybe thousands, of people it had hoped to bring on via pandemic relief aid, including mental health workers, nurses and counselors — mainly because of shortages in those high-demand fields.
The state has helped by delaying the financial hit of having fewer students. L.A. Unified — like many school systems — has declining enrollment, which eventually will lead to decreased funding.
Senior officials say no services to students are being cut and no full-time workers are losing employment and benefits — although some people are changing jobs and making less money. This will not be the story in the 2026-27 academic year.
Other school districts have not been so fortunate.
The Santa Ana Unified School hasapproved 262 layoffs, including teachers, counselors and other staff. The district has experienced a 28% enrollment decline over the last decade and has had to confront a $154-million budget deficit.
Other districts with layoffs include Berkeley Unified, Pasadena Unified, Coachella Valley Unified and San Ramon Valley Unified. Still, other school systems made steep budget cuts last year.
For L.A. Unified, significant cuts are targeted to start July 1, 2026. Schools are likely to lose workers — possible examples would be teacher aides or supervision aides — when the individual school is limited by its own budget restraints. These workers had been funded by the central office. This is expected to save at least $60 million a year.
As many as 10 schools or, at the very least, underused buildings at various campuses would be closed — saving $30 million per year. Shrinking central and regional offices is expected to save $325 million over two years.
The projected budget cuts add up to $1.6 billion over two years — which is not enough to end the deficit spending but keeps the district out of the red for three years, which is all that state law requires.
L.A. Unified hired permanent employees with one-time COVID-19 relief funding that exceeded $5 billion. Without additional funding, workers will be laid off. There have been no specific discussions about which workers would lose jobs, but Supt. Alberto Carvalho said the goal would be to keep cuts as far away from the classroom as possible.
A major — and largely unaccounted for — cost in the last year has been payouts related to sexual misconduct claims dating back as far as the 1940s. Last year alone, L.A. Unified paid out more than $300 million in claims. These claims will be funded through special bonds to stretch the financial burden across 15 years, but the cost still could be $50 million per year or more.
Declining enrollment means state funding will decrease. At the same time, many costs have risen.
This year, the district had about 408,083 students in transitional kindergarten through 12th grade. Next year's number is expected to be about 396,070, and then about 385,091 the year after that.
The school system also approved larger wage packages for employees than many other districts. Another cost is unfunded retiree health benefits. There are more than 35,000 district retirees covered by post-retirement benefits. In 2023-24, for example, these expenses added up to about $331.8 million.
The budget is a complex document — with money streaming in or drying up from sources with different spending rules. So, although an elementary school with declining enrollment is struggling to hold on to all of its teachers, funding for after-school programs and field trips is enormously expanded compared with a decade ago.
But in the main, the district's priorities and spending are fairly consistent.
At this time of year, the Board of Education is under tremendous salary pressure from unions. No employee group is satisfied with the 2% wage increase offer.
Local 99 of Services Employees International Union says the district has been underhanded by keeping many employees working fewer than four hours per day. When workers reach four hours per day, they qualify for health benefits. United Teachers Los Angeles says early-career teachers need a major pay hike.
A coalition of advocates wants more money targeted toward schools that have the highest needs — even if that means less money for other schools. District spending already works this way, but the advocates say the current distribution does not go far enough.
The teachers union and a coalition of allies are especially pushing for a pro-immigrant, pro-Black student agenda, leaning hard on school board members they helped elect.
Last week, Carvalho tried to placate them — and his board — by putting an additional one-time augmentation of $50 million into the Black Student Achievement Plan, or BSAP, for the 2025-26 school year, bringing funding to $175 million. BSAP provides extra psychiatric social workers and academic counselors, among other enhancements.
Under an agreement with the Biden administration, the benefits of BSAP have to be available to all students with similar needs, not just Black students. Some of the activists want the district to return BSAP to a Black-only focus.
Immigrant families are expected to benefit from $4 million more for student centers, whose services can include legal referrals and other family support. Activists wants more.
There's already a sizable budget for making campuses greener, but Carvalho has agreed to add an additional $1 million a year over the next three years.
So far, Carvalho's budget moves have been met with uneven support from school board members — a slim majority of four voted last week to approve the fiscal stabilization plan.
Former L.A. schools Supt. Austin Beutner is leading a group that is suing L.A. Unified, accusing the district of violating voter-approved Proposition 28 — which he wrote and which provides new arts funding for every public school in California.
That infusion for arts instruction was supposed to begin in the 2023-24 school year. Under the rules, the new money had to be added to arts instruction funding on top of what a school already was providing. But L.A. Unified parents and staff noticed no change in the level of arts instruction at many schools.
Under pressure, Carvalho set aside more money for the arts — and he said he's also adding more in the proposed budget.
The critics are not satisfied — and said it's likely that the district either must return millions of dollars in arts funding to the state or use it as intended.
District officials insist that their use of arts money has been legal and appropriate.
Separately, a group of student, parent and union activists continues to call for the elimination of the school police force — which a different and large contingent of parents wants to maintain and even expand.
Projecting ahead three years takes in many uncertainties — including potential cuts from Trump and a Republican-controlled Congress.
Trump's proposed education budget lays out cuts that would affect L.A. Unified. At-risk programs or grants include those for teacher training, and those helping students who are learning English, who are children of migrant workers or who are experiencing homelessness. The district has set aside $46 million for that possibility.
A revived state economy could erase the need for cuts. At the moment, however, the state budget appears to be trending in the wrong direction.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Putin Sends Trump Clear Message After U.S. Strikes on Iran
Russian President Vladimir Putin on Monday condemned Israel and U.S. and Israeli attacks on Iran. Iran sent Foreign Minister Abbas Araghchi to Moscow on Monday to lobby Putin for more support against Israel's act of war. 'The absolutely unprovoked aggression against Iran has no basis and no justification,' Putin said to Araghchi during the meeting. 'We have long-standing, good, reliable relations with Iran. Russia and Iran are old allies. And while Putin has offered mediation and rhetorical reassurance, he has stopped short of fully joining the war or offering more concrete assistance, likely due to fear of further alienating President Trump and the U.S. in the midst of his own war on Ukraine. On Sunday, former Russian President Dmitry Medvedev, a top Putin ally, noted in a series of X posts that 'a number of countries are ready to directly supply Iran with their own nuclear warheads.' This news, if true, could have cataclysmic implications. Iran is reportedly still weighing retaliation options against Israel and the United States. And how much actual support Russia can and will provide remains to be seen.
Business Upturn
24 minutes ago
- Business Upturn
Trump's airstrike on Iran, crypto investors flock to Blockchain Cloud Mining for risk aversion This crypto market is shaken
London, UK, June 23, 2025 (GLOBE NEWSWIRE) — June 2025, US President Trump once again drew the world's attention back to the crosshairs of the Middle East war. As the US military precisely struck Iran's nuclear facilities, the entire international financial market has intensified, and the crypto market has also been caught in turmoil. In this chaotic situation, more and more investors are turning their attention to a more stable option: blockchain cloud mining. In particular, Blockchain Cloud Mining, a platform regulated by the UK, compliant and transparent, is rapidly becoming a new generation of digital safe-haven asset allocation tools. On the evening of June 21, 2025, the US Air Force dispatched stealth bombers and unmanned fighter jets to carry out air strikes on multiple Iranian nuclear-related targets, including the three core facilities of Natanz, Fordow and Isfahan. Although the White House claimed that it was 'necessary defense to prevent nuclear proliferation', Iran said that it 'has been regarded as a formal declaration of war' and threatened to block the Strait of Hormuz, causing panic in the global crude oil supply. The shadow of war once again looms over the world: oil prices soared, gold prices hit new highs, Nasdaq and Dow Jones plummeted, and U.S. bond yields plummeted. At the same time, the cryptocurrency market also experienced violent fluctuations, with Bitcoin falling to $103,000 at one point, and mainstream currencies such as DOGE and XRP fluctuating by more than 12% in a day. Data from mainstream trading platforms such as Robinhood and Coinbase show that a large number of users reduced their holdings within 48 hours and turned to stablecoins, fiat currencies or other low-risk configurations. It is in this atmosphere of spreading anxiety that an investment method that does not rely on the rise and fall of currency prices but can obtain sustainable crypto returns has quickly gained attention: BlockchainCloudMining. Why do crypto investors choose BlockchainCloudMining? ⦁ Register to get an instant reward of $12. ⦁ High profit levels and daily dividends. ⦁ No other service fees or management fees. ⦁The platform supports settlement of more than 9 cryptocurrencies such as DOGE, BTC, ETH, SOL, USDC, USDT, XRP, LTC, and BCH. ⦁The company's affiliate program allows you to refer friends and receive up to $50,000 in referral bonuses. ⦁McAfee® security. Cloudflare® security. 100% uptime guarantee and excellent 24/7 human online technical support. How to get started with BlockchainCloudMining Step 1: Register an account In this case, we chose BlockChainCloudMining as our cloud mining service provider. Go to the service provider of your choice to register and create a new account. BlockChainCloudMining offers a simple registration process, just enter your email address and create an account to participate. After registration, users can start mining Bitcoin and other cryptocurrencies immediately. Step 2: Purchase a mining contract Currently, BlockChainCloudMining offers a variety of mining contracts, each with a unique return on investment (ROI) and a specific contract period. After purchasing a contract, you can receive earnings the next day, and you can also choose to withdraw to your crypto wallet or continue to purchase other contracts. (The platform has launched a number of stable income contracts, for more contract details, please log in to the official website of Collective shift of Robinhood and Coinbase users In the past 72 hours, several crypto analysis bloggers have found that users from Robinhood and Coinbase are turning to cloud mining platforms on a large scale. Some popular KOLs said on the X platform: 'Instead of wandering anxiously in the exchange, it is better to use BTC for production.' This is exactly the concept emphasized by BlockchainCloudMining – let assets 'generate coins' instead of just 'store coins' When will the next impact come? Will Iran retaliate? Will the United States expand its military operations? Will OPEC intervene in the crude oil market? There are no answers to these. But what can be confirmed is that the logic of war is diffuse, and the sense of security of assets is scarce. At this moment when the smoke of gunpowder has not yet dissipated, the real winners are not speculators who sell high and buy low, but those long-termists who have a stable, continuous and transparent source of income. For more details, please visit the official website: Or contact the company email: [email protected] Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. Cryptocurrency mining and staking involve risk. There is potential for loss of funds. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash
Los Angeles Times
27 minutes ago
- Los Angeles Times
GOP tax bill would ease regulations on gun silencers and some rifles and shotguns
WASHINGTON — The massive tax and spending cuts package that President Trump wants on his desk by July 4 would loosen regulations on gun silencers and certain types of rifles and shotguns, advancing a longtime priority of the gun industry as Republican leaders in the House and Senate try to win enough votes to pass the bill. The guns provision was first requested in the House by Georgia Rep. Andrew Clyde, a Republican gun store owner who had initially opposed the larger tax package. The House bill would remove silencers — called 'suppressors' by the gun industry — from a 1930s law that regulates firearms that are considered the most dangerous, eliminating a $200 tax while removing a layer of background checks. The Senate kept the provision on silencers in its version of the bill and expanded upon it, adding short-barreled, or sawed-off, rifles and shotguns. Republicans who have long supported the changes, along with the gun industry, say the tax infringes on Second Amendment rights. They say silencers are mostly used by hunters and target shooters for sport. 'Burdensome regulations and unconstitutional taxes shouldn't stand in the way of protecting American gun owners' hearing,' said Clyde, who owns two gun stores in Georgia and often wears a pin shaped like an assault rifle on his suit lapel. Democrats are fighting to stop the provision, which was unveiled days after two Minnesota state legislators were shot in their homes, as the bill speeds through the Senate. They argue that loosening regulations on silencers could make it easier for criminals and active shooters to conceal their weapons. 'Parents don't want silencers on their streets, police don't want silencers on their streets,' said Senate Democratic leader Charles E. Schumer, D-N.Y. The gun language has broad support among Republicans and has received little attention as House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D., work to settle differences within the party on cuts to Medicaid and energy tax credits, among other issues. But it is just one of hundreds of policy and spending items included to entice members to vote for the legislation that could have broad implications if the bill is enacted within weeks, as Trump wants. Inclusion of the provision is also a sharp turn from the climate in Washington just three years ago when Democrats, like Republicans now, controlled Congress and the White House and pushed through bipartisan gun legislation. The bill increased background checks for some buyers under the age of 21, made it easier to take firearms from potentially dangerous people and sent millions of dollars to mental health services in schools. Passed in the summer of 2022, just weeks after the shooting of 19 children and two adults at a school in Uvalde, Texas, it was the most significant legislative response to gun violence in decades. Three years later, as they try to take advantage of their consolidated power in Washington, Republicans are packing as many of their longtime priorities as possible, including the gun legislation, into the massive, wide-ranging bill that Trump has called 'beautiful.' 'I'm glad the Senate is joining the House to stand up for the Second Amendment and our Constitution, and I will continue to fight for these priorities as the Senate works to pass President Trump's One Big Beautiful Bill,' said Texas Sen. John Cornyn, who was one of the lead negotiators on the bipartisan gun bill in 2022 but is now facing a primary challenge from the right in his bid for reelection next year. If the gun provisions remain in the larger legislation and it is passed, silencers and the short-barrel rifles and shotguns would lose an extra layer of regulation that they are subject to under the National Firearms Act, passed in the 1930s in response to concerns about mafia violence. They would still be subject to the same regulations that apply to most other guns — and that includes possible loopholes that allow some gun buyers to avoid background checks when guns are sold privately or online. Larry Keane of the National Shooting Sports Foundation, who supports the legislation, says changes are aimed at helping target shooters and hunters protect their hearing. He argues that the use of silencers in violent crimes is rare. 'All it's ever intended to do is to reduce the report of the firearm to hearing safe levels,' Keane says. Speaking on the floor before the bill passed the House, Rep. Clyde said the bill restores Second Amendment rights from 'over 90 years of draconian taxes.' Clyde said Johnson included his legislation in the larger bill 'with the purest of motive.' 'Who asked for it? I asked,' said Clyde, who ultimately voted for the bill after the gun silencer provision was added. Clyde was responding to Rep. Maxwell Frost, a 28-year-old Florida Democrat, who went to the floor and demanded to know who was responsible for the gun provision. Frost, who was a gun-control activist before being elected to Congress, called himself a member of the 'mass shooting generation' and said the bill would help 'gun manufacturers make more money off the death of children and our people.' Among other concerns, control advocates say less regulation for silencers could make it harder for law enforcement to stop an active shooter. 'There's a reason silencers have been regulated for nearly a century: They make it much harder for law enforcement and bystanders to react quickly to gunshots,' said John Feinblatt, president of Everytown for Gun Safety. Schumer and other Democrats are trying to convince the Senate parliamentarian to drop the language as she reviews the bill for policy provisions that aren't budget-related. 'Senate Democrats will fight this provision at the parliamentary level and every other level with everything we've got,' Schumer said earlier this month. Jalonick writes for the Associated Press.
