Ticking timebomb at Americas second biggest school district as chaos looms for thousands of families

A bankruptcy deadline less than three weeks away could force Los Angeles Unified to hand over control to the county — causing even more chaos for families in the struggling district.Faced with looming insolvency and massive deficits caused by unaffordable labor contracts, the nation’s second biggest district faces a county-imposed Aug.7 deadline to deliver a workable plan balance its books.If LAUSD fails to rewrite its $20.6-billion budget, the Los Angeles County Office of Education said it will seize control of the scandal-scarred district, which just saw the departure of ex-superintendent Alberto Carvalho after the FBI raided his home.School Board member Tanya Ortiz Franklin said she understands the county’s position.“I think they’re right to be concerned,” Franklin told the Los Angeles Times.

 Franklin told the paper she agrees with county’s conclusion that costly deals with labor unions are causing financial ruin, even though they were approved just this year by all seven board members. In order to avoid a threatened strike, the district in April agreed to three different contract agreements that will cost it close to $1.2 billion annually.Now, the district faces a budgetary shortfall of $231 million by next November, ballooning to a $3.5-billion deficit by June 2029.LAUSD officials have also blamed cratering enrollment and the end of one-time pandemic aid for the crisis.The County Office of Education isn’t buying LAUSD’s excuses and instead has instructed the board to detail specifically how it will carry out needed cuts. Otherwise, the county superintendent will appoint a trustee with authority to veto spending decisions.If the district were to become insolvent, then an appointed administrator would take all power away from Superintendent Andrés E.Chait and the school board — an action without precedent in LAUSD and an unusual event for big urban school systems.School closures, program cuts and thousands of layoffs are among the loomi...