LAUSD faces 'severe' signs of insolvency; county warns it could take control of budget

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Set us as preferred The Los Angeles Unified School District faces “severe” indications that it will be insolvent by November 2027 — falling $231 million into the red and unable to make payroll — county analysts have concluded, setting up a 45-day deadline for the school board to amend their budget or face losing significant future authority over spending decisions.The county has appointed a “fiscal expert” to work with the district to eliminate the projected deficit.If that effort falls short, county authorities will appoint an official empowered to overturn school board spending decisions, according to the letter sent to L.A.

Unified.The July 2 notice, from county education office Supt.Debra Duardo to L.A.

school board President Scott Schmerelson, said the district’s recent budget adoption “erodes confidence” in its decision-making.The county attributes the crisis largely to union contracts it repeatedly warned L.A.

Unified officials the district could not afford.The projected annual cost of the union settlements and employee raises is well over $1 billion a year.“They have some serious financial concerns that they need to address,” Duardo said in an interview Thursday.

“It’s very serious.”The letter formally issues LAUSD a “Lack of Going Concern” determination, meaning the district may not be able to meet its obligations in the 2027-28 and 2028-29 school years.It is a step the Los Angeles County Office of Education, or LACOE, takes only when a district faces serious deficit spending, Duardo said.

California With a major LAUSD strike averted, Tuesday changed from a day of anxiety to one of celebrating new deals for unions.But are they too expensive?L.A.

schools Supt.Andrés E.

Chait suggested there is no need for alarm.“This determination does not change our commitment to students, fam...