The Los Angeles Unified School District (LAUSD) is confronting a looming fiscal deadline, with its board now solely responsible for the district's financial challenges. The district has 45 days to submit a revised budget by Friday, or the county has the authority to seize control of its finances.
This critical juncture follows the board's June decision to approve significant pay raises for unions, despite warnings from the LA County Office of Education about severe financial problems. The LA County Office of Education sent an “ominous letter” to the board four days before they approved the pay hikes, detailing the potential financial fallout.
District leaders, including board president Scott M. Schmerelson, publicly took credit for the pay raise decision in a June press release, with Schmerelson acknowledging the district was “facing financial challenges.” Board member Tanya Ortiz Franklin stated the raises would assist staff who were “struggling to make ends meet.”
The district's financial woes are compounded by the departure of former superintendent Alberto Carvalho. Carvalho resigned in late June, shortly after an FBI raid in February that reportedly stemmed from an investigation into a controversial artificial intelligence contract. Prior to his resignation, a secret letter from the board accused Carvalho of misusing district resources for personal benefit, accepting unreported gifts, and seeking outside income despite his $440,000 salary. Carvalho had been on paid leave for months prior to his resignation.
The LAUSD board, now without Carvalho to attribute blame to, must address the budget deficit and the consequences of its own fiscal decisions.