By Mariana Dale for LAist
Originally published June 24, 2025
The Los Angeles Unified board voted unanimously Tuesday to approve an $18.8 billion budget that does not cut staff or close campuses next school year, but relies on diminishing reserves to make ends meet.
The backstory: California funds schools based on how many students show up to class each day. About 408,000 students attended LAUSD this past school year, a more than 40% decline from enrollment two decades ago, but the district has not closed schools or significantly reduced staff, even as many costs have increased.
Simply put, the district is spending more money than it brings in. LAUSD will pull from its reserves for a second year to make up a nearly $3 billion deficit.
Continued investment: District staff highlighted increased funding for programs that support Black students ($175 million), immigrant students ($5 million), LGBTQ+ students ($2 million) and create more green space on school campuses ($1 million).
Big unknowns: The district’s budget does not account for several factors, including:
- contracts currently being negotiated with the school support staff and teachers unions that could include raises;
- reductions in federal funding; and
- unsettled sexual abuse claims that stretch back decades
Planning for future cuts: California law requires districts to create a “fiscal stabilization plan” if they’re at risk of not meeting their financial obligations. LAUSD’s proposed plan includes school closures, layoffs of non-school-based staff, and cutting how much money individual schools can carry over in their budgets from year to year.
This report is reprinted with permission from Southern California Public Radio. © 2024 Southern California Public Radio. All rights reserved.