The Los Angeles Board of Education has approved a budget-reduction plan that will eliminate thousands of jobs over the next three years but preserve a crucial program aimed at enhancing Black student achievement. The plan addresses the district's projected insolvency while incorporating significant labor agreements that increase annual costs.
Under pressure from community and student advocates, the board reversed substantial proposed cuts to the district's Black Student Achievement Plan. Initially, the fiscal blueprint intended to slash $100 million from the program's $125 million annual budget, effective July 1, 2027. However, board members adopted amendments to restore funding. One amendment, proposed by Kelly Gonez, reinstated $50 million, halving the initial reduction. A subsequent amendment by Karla Griego secured an additional $175 million by drawing down a retiree health benefit trust fund, largely closing the projected financial gap for the plan's three-year duration. Board members Nick Melvoin and Tanya Ortiz Franklin voted against these amendments.
Despite these adjustments, the approved financial plan still mandates a reduction of $500 million in supplemental funding for schools identified as serving students with the highest needs. The board's decision follows the approval of major labor agreements that narrowly averted a strike in April. These agreements will increase district costs by over $1 billion annually through higher salaries and maintained health benefits for employees, alongside expanded student services. Acting Superintendent Andres Chait acknowledged the painful necessity of the "fiscal stabilization plan," emphasizing that the labor contracts provide essential support for employees and students.
California law mandates that all school districts operate within their financial means, with the L.A. County education office enforcing solvency requirements. Los Angeles Unified must demonstrate a path to fiscal stability. Without the proposed cuts, the district anticipates deficits of $1.3 billion and $3.6 billion in the subsequent two years. The preliminary plan estimated the elimination of 6,000 jobs out of approximately 83,000 employees over three years, alongside seven unpaid furlough days that require union negotiation. Union leaders have voiced opposition to the furlough days, advocating instead for restrictions on outside contracting and executive pay.
The budget plan also faced significant opposition regarding proposed cuts to discretionary spending, including a $3.5 million reduction to the school police budget for the next fiscal year. Union leaders in the school police department warned this could lead to layoffs. Additionally, the elimination of $500 million allocated through the Student Equity Needs Index (SENI), which prioritizes schools based on academic, health, and community indicators, drew strong condemnation, potentially resulting in the loss of services like counseling and mental health support.
The fiscal outlook could be influenced by unconfirmed future revenues, such as a $328 million discretionary block grant for the 2026-27 school year, which cannot be guaranteed under state budgeting rules. Further funding could arise from increased state tax revenue, but this is not factored into current calculations. Declining enrollment also poses a long-term challenge, potentially necessitating further staff reductions and school closures. The majority of the cuts are scheduled to take effect on July 1, 2027, leaving a year to explore alternative solutions and benefit from potential increases in state aid, contingent on economic stability.
