The Los Angeles Unified School District made adequate revisions to its budget and fiscal stabilization plan within the 45-day deadline outlined in a July 2 news release. letter from the Los Angeles County Office of Education. But it will continue to be monitored by LACOE, the agency confirmed to EdSource on Thursday.
The July letter projected that Los Angeles Unified would face a $231 million cash flow deficit in 2027.
“LACOE’s purpose is not to direct LAUSD’s spending decisions,” according to the LACOE statement. “Our responsibility is to ensure the district maintains a fiscally sustainable budget and lives within its means. The focus remains on good governance, financial accountability and the district’s successful implementation of its financial commitments.”
Most of the plans presented by LAUSD to the Los Angeles County Office of Education are multi-year measures and have not yet been implemented, LACOE said. District administrators have previously told EdSource that such measures could include layoffs, furloughs and school closures.
“Where projected savings depend on actions that remain subject to negotiation or have not yet been achieved, LAUSD will need to demonstrate that these savings are achieved or identify sufficient alternatives,” LACOE said in a statement to EdSource.
As a result, LACOE said it will continue to monitor the district – including through a financial expert – and determine whether the budget cuts outlined in the district’s budget stabilization plan are being implemented and leading to adequate savings.
“We will continue to work with LACOE to ensure our financial plan includes the actions necessary for the district to continue meeting its financial obligations,” LAUSD said in a statement.
This story was originally published by EdSource.
