LAUSD approves massive staff pay hikes despite warning of $3.6 billion deficit

The Los Angeles Unified School District (LAUSD) approved staff salary increases of up to 24%, including a 14% raise for many teachers, even after the Los Angeles County Office of Education (LACOE) sent a June 12 letter warning that the contracts would drive a projected $3.6 billion negative reserve balance by 2029. LACOE estimated the new agreements would cost about $1.2 billion annually, prompting concerns of thousands of layoffs and possible insolvency within a year. The county placed LAUSD under heightened fiscal oversight, demanding a revised budget and a fiscal stabilization plan to address the shortfall, and warned the district to reconsider the labor deals. Critics say the board ignored the “severe” fiscal warnings, risking state takeover and receivership if the financial trajectory is not corrected.

LAUSD officials acknowledge receipt of the June 12 warning and say they have implemented the required stabilization plan, but parents and educators remain alarmed by the looming budget crisis and its impact on more than half a million students.