County warns LAUSD could be insolvent by November 2027

6 min read

Los Angeles Unified received a county determination that it faces severe risk of insolvency, with month-end cash balances projected to go negative by $231 million in November 2027 and again in early 2028, which could stop payroll. County officials cite costly employee-union contracts that add roughly $1.13 billion this year and $1.44 billion in 2027-28, unmade planned cuts including $231 million, a $175 million reserve draw, and steep enrollment declines to about 390,000 students. The county has assigned a fiscal expert and set a 45-day deadline; failure to fix the budget could lead to a fiscal adviser or full takeover.

LAUSD projects a $231 million cash shortfall by November 2027