Los Angeles Unified School District approves $20.6 B budget with layoffs and new strategic plan

The Los Angeles Unified School District (LAUSD) board unanimously adopted a $20.6 billion budget for the fiscal year beginning July 1. The plan includes more than 1,000 employee layoffs and a four‑year strategic plan aimed at improving student achievement. Acting Superintendent Andres Chait presided over the meeting following the resignation of Superintendent Alberto Carvalho, who stepped down after an FBI raid on his home and office; no charges have been filed.

The budget exceeds the previous year's $18.8 billion spending by nearly $2 billion and is funded partly by district reserves to cover a projected shortfall of $2 billion. Increases cover salary hikes, health‑benefit costs, and benefits for part‑time staff, while labor deals restore counselors and technology workers. The board also reversed cuts to the Black Student Achievement Plan. Despite these measures, the district expects several hundred permanent staff to lose jobs this July, with thousands more reductions projected over the next two years as enrollment declines and COVID‑relief funds expire.

The financial plan reflects inflation, slower state funding growth, and a shrinking student population in the nation’s second‑largest school system, which now serves about 390,000 students compared with double that number in the early 2000s.