Story by Teresa Liu, Los Angeles Daily News • 16h • 3 min read
Monday, June 9, 2025.© Hans Gutknecht/Los Angeles Daily News/TNS
The Los Angeles Unified School District board is scheduled to vote Tuesday, June 24, on an $18.8 billion operating budget for the next fiscal year. The vote comes as the district prepares to begin repaying hundreds of millions of dollars in bonds issued to cover legal settlements tied to decades-old sexual abuse claims, and amid growing scrutiny over how it is spending state arts education funds.
Earlier this month, the board approved using up to $500 million in judgment obligation bonds to help finance a wave of legal settlements with former students who allege they were sexually abused by district employees.
To ease the immediate financial impact, the district plans to spread the cost over 15 years. Last week, officials said they would initially sell $303.6 million in bonds to reimburse short-term loans already used to fund settlements, with total repayment potentially reaching $765 million including interest.
The district is also facing a legal challenge over its use of $76.7 million in Proposition 28 arts education funding, which is included in the new budget.
A group of students and former LAUSD Superintendent Austin Beutner alleged that LAUSD is misusing the funds by using them to backfill existing positions instead of hiring new arts educators, as the voter-approved measure requires.
The proposed spending plan for the next fiscal year includes total revenue of $15.9 billion and planned expenditures of $18.8 billion.
While the district can balance the upcoming budget using reserves, officials warned that LAUSD is on track to face a projected $2.2 billion shortfall by the 2027–28 school year. To remain compliant with state requirements, the district is preparing a fiscal stabilization plan that identifies $1.6 billion in cuts—the minimum needed to legally balance the budget in that third year.
“The total stabilization plan only accounts for $1.6 billion,” said LAUSD’s Chief Financial Officer Chris D. Mount-Benites during a budget presentation on June 17. “If you’re thinking, ‘Wait a second, if our current deficit is $2.2 billion, why does the stabilization plan only call for $1.6 (billion)?’”
He explained that the stabilization plan only identifies the minimum cuts required to meet the state’s legal requirement for a balanced budget in the final year of the district’s multi-year financial forecast.
Despite the long-term challenges, Superintendent Alberto Carvalho stressed that the 2025–2026 budget includes “no furloughs or reductions in force contemplated, advocated or recommended.”
He acknowledged the legal requirement to submit a fiscal stabilization plan, but urged the board and public to see it as a precaution—not a guarantee of future reductions.
“We are spending more money than we take in,” Carvalho said. “And for a while, that is okay because you do have reserves. But if you continue to significantly spend more than the resources that are provided to you, eventually your resources, your reserves are depleted, and then the harsh reality comes.”
Fiscal year 2026 runs from July 2025 through June 2026.
LAUSD is facing a looming pullback in funding
District will vote on an $18.8-billion budget for 2025-26 that delays cuts — for now.
By Howard Blume (LA Times) 6-23-25
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.
How did LAUSD avoid layoffs?
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.
What spending
is being cut?
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 has approved 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.
What has biggest
effect on budget?
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.
What programs will get most support?
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 that 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.
What are some lingering disputes?
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.
What does the future look like?
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.
From: Chad Boggio <cboggio@laocbuildingtrades.org>
Sent: Thursday, February 22, 2024 12:41 PM
To: Chad Boggio <cboggio@laocbuildingtrades.org>
Subject: FW: Notice of Delayed Implementation of Increase to Daily Flat Rate
Hello Brothers and Sisters,
Late yesterday I was informed by Labor Relations at the District that the implementation of the increase in the Daily Flat Rate, and retro payment has been delayed until March. I have asked the District to be more specific, either the first or second pay date, but they are unable to provide anything more specific than “no later than the last pay date in March.” The email notice, and preceding phone call from the District was very apologetic. I was told the problem is in the programing of the new rates into the system. A test run resulted in errors, hence the delay until next month.
I am as equally frustrated as you all are. I will keep you posted as I learn more specifics. Thank you for your patience.
Sincerely,
Chad Boggio
Council Representative
Los Angeles /Orange Counties
Building & Construction
Trades Council AFL-CIO
1626 Beverly Blvd.
Los Angeles, CA 90026
From: Chad Boggio
Sent: Wednesday, August 2, 2023 10:37 AM
To: Chad Boggio <cboggio@laocbuildingtrades.org>
Subject: FW: Dates for Implementation of new Unit E MOU
Brothers and Sisters,
Earlier this morning the District notified me of the dates scheduled for the implementation of our recently bargained contract and retro-active payments. The District stressed that these are tentative and may change in the event of unforeseen circumstances.
Unit E members that are eligible for the $2500 lump sum payment should receive the payment on August 11th. (to be eligible you had to have been employed at the District as of July 1, 2020 and be active on the date the board adopted the agreement)
Rates will be adjusted to the current negotiated rate and retro-active payments including the additional $2000 for those members that did not receive an increase in 2019 will go into effect and be paid November 8th, 2023.
Feel free to reach out with any questions you may have to your Business Agent or myself.
Sincerely,
Chad Boggio
Council Representative
Los Angeles /Orange Counties
Building & Construction
Trades Council AFL-CIO
1626 Beverly Blvd.
Los Angeles, CA 90026
From: Chad Boggio
Sent: Wednesday, June 14, 2023 1:51 PM
To: Chad Boggio <cboggio@laocbuildingtrades.org>
Subject: FW: LAUSD School Board Votes To Adopt Unit E MOU Tentative Agreements
Good Afternoon Brothers and Sisters,
I am happy to be able to announce that the School Board voted to adopt our Successor Unit E MOU at yesterday’s Board meeting. We have requested that the District notify us as soon as possible when they can confirm which pay warrant will reflect our new rates and when you will receive the required retroactive pay.
I want to thank the 300+ members that turned out to vote on ratifying our new contract! Special thanks to IBEW local 11 and the ETI for hosting our meeting.
Sincerely,
Chad Boggio
Council Representative
Los Angeles /Orange Counties
Building & Construction
Trades Council AFL-CIO
LAUSD Settlement Summary Unit E
2020-2022
2022-2025
Term: July 1, 2020 – June 30, 2022
July 1, 2022 – June 30, 2025
Wages: 2019-2020 Limited Wage Reopener- $2000 lump sum payment to all Unit E members that were employed as of June 30, 2019 and did not receive an increase in base pay, and are active as of the date of the Board adoption of the Tentative Agreement.
2020- $2500 lump sum payment (Retention and Appreciation Bonus) to all Unit E members that were employed as of July 1, 2020 and active as of the date of the Board adoption of the Tentative Agreement.
2021-2022 Effective July 1, 2021 all Unit E Bargaining Unit members shall receive a 5% on-schedule wage increase applied to all pay scale.
2022-2023 Effective July 1, 2022 all Unit E Bargaining Unit members shall receive a 3% on-schedule wage increase applied to all pay scale.
Effective January 1, 2023 all Unit E Bargaining Unit members shall receive a 4% on-schedule wage increase applied to all pay scale.
2023-2024 Effective July 1, 2023 all Unit E Bargaining Unit members shall receive a 3% on-schedule wage increase applied to all pay scale.
Effective January 1, 2024 all Unit E Bargaining Unit members shall receive a 4% on-schedule wage increase applied to all pay scale.
2024-2025 Effective July 1, 2024 all Unit E Bargaining Unit members shall receive a 3% on-schedule wage increase applied to all pay scale.
Effective January 1, 2025 all Unit E Bargaining Unit members shall receive a 4% on-schedule wage increase applied to all pay scale.
Hours & Overtime:
Added language to Article IX, Section 1.4 that now includes 9/80 schedule to the list of alternative work schedules.
Reimbursement for Mileage Expenses:
Increased the Daily Flat Rate in Article XIX, Section 3.0 from $8.00 for a passenger car to $9.00.
Increased the Daily Flat Rate in Article XIX, Section 3.0 from $11.00 for a pick-up truck or van to $12.00.
Increased the Daily Flat Rate in Article XIX, Section 3.0 from $14.00 for hauling in excess of 200 pounds to $15.00.
Los Angeles Fire Department Bureau of Fire Prevention & Public Safety Regulation-4 Testing Certification Differential:
Appendix A, Section 2.5- Expanded the amount of Unit E members that are eligible for this 5.5% differential by eliminating language that limited the differential to three classifications. We also eliminated the requirement that the District direct unit members to get the certificate in order to be eligible.
Council Rights:
Article IV, Section 13 (b)(ii) New Employee Onboarding- amended language to include a requirement that the district provide a 10 day notice of onboarding sessions. The notice must include the employee’s name, classification, assigned location and the point of contact. The improved language also increases the time we have to meet with new employees on paid District time from 15 minutes to 30 minutes.
Building Trades Negotiation team for LAUSD contract
Painters District Council 36, DC 36, IBEW Locals, Plumbers, Local 300, etc.
From: Chad Boggio
Sent: Saturday, June 3, 2023 2:09 PM
To: Chad Boggio <cboggio@laocbuildingtrades.org>
Subject: FW: LAUSD Unit E Ratification Vote Results
Brothers and Sisters,
The membership ratified both Tentative Agreements that will run through June 30, 2025 at our meeting today.
I will send out another email on Monday afternoon with the details. Congratulations and thank you to all who showed up to participate today.
Have a great weekend.
Sincerely,
Chad Boggio
Council Representative
Los Angeles /Orange Counties
Building & Construction
Trades Council AFL-CIO
LAUSD Contract Unit E
Los Angeles Unified School District
PERSONNEL COMMISSION RULES AND LAWS
Los Angeles Unified School District Board of Education
LAUSD Website
Talent Acquisition & Selection Branch
Monday - Friday: 8:00 AM - 4:30 PM
Departments
The Appeals Unit
(213) 241-7800
The Appeals Unit, which is mandated by the California Education Code, is responsible for the disciplinary and examination appeals for classified employees. The unit ensures impartially, fair treatment and due process which support the principles of the merit system. The Personnel Commission is an impartial department and exists to ensure that other District offices comply with the California Education Code, Personnel Commission Rules, and Board Rules.
The Classification and Compensation Branch
(213) 241-7800
The Personnel Commission, Classification and Compensation Branch is responsible for the classification of District classified positions which include non-certificated positions. The Commission staff studies duties and responsibilities of classified positions established by the Board of Education and makes recommendations to the Commission regarding the proper classification and compensation.
The Classified Employment Services Branch
(213) 241-6300
The Employment Services Branch manages all personnel transactions for classified (non-teaching) positions and is responsible for ensuring that all assignment transactions are in compliance with Education Code provisions, Personnel Commission rules, collective bargaining agreements, and District policies and procedures.
The Organizational Excellence Branch
(213) 241-3440
Organizational Excellence Branch provides training that assists employees in their professional and personal development, including: certificate programs for supervisors and employees working towards becoming supervisors; technical one-on-one, on-site, and in-house training for school-based clerical employees; weekend trainings for paraeducators; specialized/customized trainings for departments/offices; PACE – Program for Accelerated College Education (a collaboration between Pierce College and LAUSD) providing employees with the opportunity to obtain an AA degree here at LAUSD; on-line trainings in various topics.
The Talent Acquisition and Selection Branch
(213-241-3455)
If you are looking for new challenges to advance in your career, consider the Los Angeles Unified School District (LAUSD). Whether you are just beginning your career, contemplating a career change, or are a seasoned professional looking for a new opportunity to expand your career, LAUSD offers a variety of non-teaching opportunities. Our competitive salaries, outstanding benefits, excellent training opportunities, and a professional environment, and many other incentives, make up the culture that is LAUSD Classified Employment.
North Region 2 (M&O Area N2)
8960 Herrick Avenue, Sun Valley, CA 91352 (818) 394-2400
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