Fiscal Stabilization Plan

Los Angeles County officials warned LAUSD it risks insolvency due to unsustainable spending, new labor agreements, and declining enrollment. The county demanded budget revisions by mid-August and may appoint a fiscal advisor with overruling authority if changes are insufficient.

The Los Angeles Unified School Board is set to vote on a $21 billion spending plan for the next school year, which includes raises, class size reductions, and mental health support. However, the district faces a $2 billion budget deficit this year and a projected $3.6 billion deficit by 2028-29, with a fiscal stabilization plan likely leading to job eliminations.

The Los Angeles Unified School District faces a $1.3 billion deficit in 2027-28 and a $3.6 billion deficit in 2028-29, prompting consideration of cuts to equity programs like the Student Equity Needs Index and Black Student Achievement Plan, which could lead to thousands of layoffs. Community advocates argue these cuts contradict the district's commitment to equity, while district leaders claim fiscal stabilization is necessary to avoid depleting reserves.

The Pasadena Unified School District is finalizing its 2026-27 budget as the Los Angeles County Office of Education requests an updated Fiscal Stabilization Plan. The district plans to address the request while collaborating with the county and the state's Fiscal Crisis and Management Assistance Team.