INFO SHEET 

The Facts

LAUSD currently has a projected budget deficit of $596.1 million for the 2009-2010 school year. Nearly 9,000 reduction in force notices have been sent out informing employees that they may be laid off. Layoffs of this magnitude would devastate our classrooms and students and we must take whatever actions we can to prevent this.  All of us – teachers, parents, caregivers, students, city officials and Angelinos from all parts of the city – need to work together to find all available solutions to minimize layoffs.  

The LAUSD Board is scheduled to vote on Tuesday, April 14 to adopt its projected budget.  Check back here or at the LAUSD website, www.lausd.k12.ca.us, in order to get information about how the Board voted and what the implications are. 

Federal Stimulus Funds

The Federal Stimulus package is providing LAUSD with significant relief funds – an estimated $900 million over the next two years – that can be used to close some of the deficit and save teachers jobs.  Many of these funds are restricted and not all of the funds can be used to save teaching and other school based jobs. It is also not yet clear whether the State or the County will take a portion of these funds for administration and other fees.    

The stimulus funds will be distributed to LAUSD in two payments. The Department of Education has recommended spreading this money over two years and made it clear that the second payments will not be given to school districts if they do not reform and focus their funds on improving student achievement. LAUSD is spreading the stimulus funds over two years. 

The Total Federal Stimulus Package that is projected to be allocated to LAUSD over Two Payments includes:

• $387 million in State Stabilization funds which are the least restrictive funds and can be used to fund teachers and other school based employees;
• $361 million in Title 1 funds, which have certain restrictions and must be used to serve Title 1 students;
• $168.4 million in IDEA (special education) funds that must be used to serve special education students;
• $9.8 million in Education Technology (restricted to this use only) 

In its proposed budget, LAUSD has already allocated $160 million in State Stabilization Funds and $20 million in IDEA funds to save approximately 2,900 jobs. Additionally, close to 1,500 jobs could be saved this year if the Title 1 Stimulus Funds are used to fund teachers and other instructional personnel.

State of California and the Release of the 1^st Payment Stimulus Funds

If the State and County do not take a portion of the State Stabilization and Title 1 Stimulus Funds for administrative fees and other purposes, there is a possibility that an additional $60.1 million of Stimulus Funding can be used this year to save approximately 700 teaching jobs.  

Make Stimulus Funds more Flexible

LAUSD is submitting a waiver to the Department of Education for approval to allocate Title 1 Supplemental Education Services stimulus funding to other Title 1 uses such as class-size reduction and instructional coaching.  If this waiver is granted, the district could have an additional $31 million of the Title 1 stimulus funding to save approximately 360 teaching jobs.   

Cut the Bureaucracy

LAUSD must cut its bureaucracy. The district is currently planning to cut $109.6 million, or 22% of its central office and $19.1 million or 52% of its local districts.  Approximately 1,250 positions are being eliminated from the bureaucracy and individuals are being moved out to work in school sites. We must continue to push the leaders in LAUSD to find more cuts in its bureaucracy so that it can save classroom teachers jobs.   

Decentralization of Funding

LAUSD is allocating schools’ existing Title 1 and Title 2 funds to school sites so schools can decide how to best spend those funds. This is a part of the district’s reform to decentralize the bureaucracy and give schools decision-making powers. LAUSD projects that as many as 3,000 jobs can be saved if schools spend their Title 1 and Title 2 funds on teachers and school based instructional personnel. Additionally, schools will have control of their categorical funds and be able to use those funds to retain teachers and other school based positions.   

Early Retirement

LAUSD is offering an early retirement program to its employees. As more employees take early retirement, less classroom teachers will be laid off.   

Shared Responsibility and Shared Sacrifice

The Superintendent has asked LAUSD employees to share in the responsibility and sacrifice necessary to close the budget by considering forgoing pay raises, reductions in pay, furlough days, and other ideas in order to minimize the impact of this budget deficit on students.   

Additional Uncertainty in May

There are two unknown factors that could make the district’s budget even worse, but they will not be known until May. The agreement made in Sacramento on the State’s budget is dependent on the May elections. If the State proposals are not approved by the public then the deficit at LAUSD could be larger than the projected $596.1 million. Additionally, if the State’s May revision of its budget is worse than had been previously forecast, that will also increase LAUSD’s budget deficit. We will provide updates on this website on both of these items.