Los Angeles Unified faces a high risk of insolvency unless it moves quickly to stabilize its finances, California’s Fiscal Crisis and Management Assistance Team has concluded. The team warned that the district could lose control over budget decisions.
The team linked the outlook to hiring despite falling enrollment, employee raises outpacing growth in state funding, higher costs for educating students with disabilities and classroom space beyond current needs. Its report, set for presentation to the school board Tuesday, also said the district had missed earlier budget-cutting targets.
Projected cuts over the next three years include more than 6,000 jobs. The district, which has about 80,000 full- and part-time employees, said its board has adopted a fiscal stabilization plan and did not dispute the data. In a memo to board members, the teachers union argued that the state team overstated the crisis.
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