(The Center Square) — Los Angeles Unified School District reports student enrollment is down 29% while per-student spending is up 229% and staffing rose 21% since the 2012-2013 school year.
LAUSD anticipates a projected $1.3 billion deficit by fiscal year 2028, hinting at mass layoffs to maintain expected salary increases for protected employees as just one in four students meets state science standards.
In the 2012-2013 school year, the nation’s second largest school district had 566,600 students and 67,000 staff with a budget of $11.3 billion, or $19,944 per student.
The district now has 402,600 students, 81,300 staff and a budget of $18.4 billion, or $45,703 per student, highlighting significant structural issues with the school district’s budget.
2023-2024 LAUSD data show 57% of students did not meet state reading standards, 67% did not meet math standards, and 76% did not meet science standards. For the coming 2025-2026 fiscal year, California Gov. Gavin Newsom has proposed spending $24,746 per student.
LAUSD noted 58% of school district funds generally come from the state — largely allocated on a per-student funding formula — with 21% from local property taxes and another 9% from federal funding. This means that the long-term decline in enrollment, combined with spending growth that significantly outpaces inflation, put the district’s budget at risk.
LAUSD said stock market volatility, delayed tax deadlines due to natural disasters, federal policy uncertainty, elevated interest rates and “extreme weather events” present risks to state funding, which in turn could accelerate the district’s structural financial weaknesses.
Based on the district’s currently adopted budget, LAUSD anticipates a $1.3 billion deficit in fiscal year 2028.
LAUSD says excessive hiring could be a culprit for the runaway budget, hinting at future “Reductions in Force” taking place in fiscal year 2027.
“Schools are purchasing more positions although enrollment is declining,” wrote LAUSD in an internal board retreat document.
LAUSD also shared that “$80 billion of unfunded school facilities needs remain” among the 13,650 school buildings on the 6,370 acres it owns.
In addition to cutting positions, LAUSD is looking at consolidating both campuses and programs, and increasing cost sharing for employee benefits, which could reduce payroll and capital improvement costs.
LAUSD’s current agreement with United Teachers Los Angeles is in effect through June 2025, with negotiations for a new contract under way. LAUSD teacher salaries start at $69,304, or 21% above the median full-time salary in the city of Los Angeles of $57,247.
The City of Los Angeles, which is a separate entity from LAUSD, also faces major budget pressure, with an anticipated $1 billion deficit this year.
