County warns LAUSD could be insolvent by November 2027
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
Context
The county warned the district after the school board approved large union contracts and did not carry out planned cuts. The county assigned a fiscal expert and gave 45 days to fix the budget. If the district fails, a fiscal adviser or…
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