LAUSD’s Budget Cuts Conditionally Approved by County: More Staffing Cuts Possible
LAUSD - The Los Angeles Unified School District has until October 8th to submit “supporting detail for updates to the FY 2026-27 FSP”—the Fiscal Stabilization Plan—to the Los Angeles County Office of Education, plus contingency plans and updates to its cash flow projections “to address projected cash flow deficiencies and demonstrate the District’s ability to meet its financial obligations”.
Yet to date parents have not been informed of the impact to student services from the major planned expenditure and staffing reductions.
The detailed reporting requirements are documented in the formal budget response letter from LACOE Superintendent Debra Duardo to LAUSD’s Board of Education dated September 15, 2026.
LACOE September 15, 2026 Letter to LAUSD
The financial meltdown saga which broke onto the public stage in July with accusations by LACOE of “mismanagement of the collective bargaining process” reached its first milestone last week. The new letter sets expectations for additional disclosure of LAUSD’s plans to demonstrate it can afford to pay for the major salary increases granted to its labor partners while student enrollment continues to plummet.
As required by the California Education Code, LAUSD must respond to Superintendent Duardo’s concerns by October 8th at a regular meeting of its governing board. The county then has until November 9th to approve or disapprove the budget together with the additional supporting detail.
The plan presented to LACOE in June already calls for a reduction in force of 5,690 full-time equivalent positions with total savings of $2.4 billion dollars over the three fiscal year multiyear projection. These staffing cuts will entail major operational changes, calling into question how instructional requirements will continue to be met.
Source: LAUSD Board Presentation—September 15, 2026
Accordingly, LACOE’s conditional approval requires an implementation plan with supporting detail on expenditure reductions, timelines, responsible parties, and performance metrics.
However, the trickiest expenditure reduction actions in LAUSD’s plan calls for furlough days for all staff and health insurance cost sharing with employees, two areas which would require approval by labor unions prior to implementation. Given the history of contentious labor negotiations, these actions are far from actionable at this juncture. Therefore, LACOE is requiring disclosure of contingency plans including actions that are within the authority and sole discretion of LAUSD’s Board.
These contingency plans would most likely include more layoffs—which represent more cuts to student services and programs. The bottom line: either remaining employees share the budget cut burden or students receive less services. Which plan will win?
To avoid staffing cuts, labor unions continue to advocate for additional state funding into the TK-12 education system. Don’t expect labor to accept pay cuts or any employee contributions to health plans without a fight.
LAUSD’s next Regular Meeting of the Board of Education is scheduled for October 6th. We will finally get to see what, when, and how the district plans to pull off their planned restructuring.
LAUSD Superintendent Andrés Chait introduced theoretical school closures in a video sent to all parents last week. He doesn’t tell us which schools are on the chopping block, but he does make it clear school closures are coming.
This is just a glimpse of what to expect in LACOE’s supervision plan under the assigned Fiscal Expert—county oversight at an advisory level. The next possible level of oversight would include assignment of a Fiscal Advisor, a role with authority to rescind contracts approved by LAUSD’s Board of Education.
(Maria Luisa Palma is the founder and Executive Director of Oleada, Inc., a non-profit organization which promotes parent involvement in Los Angeles public schools, and a former federal and state financial industry regulator.)
