If this is all true, why haven’t L.A. Unified and the teacher’s union, United Teachers Los Angeles, been able to reach an agreement? Because UTLA leadership will not acknowledge the basic facts. Over a three-year period that began last July, L.A. Unified will spend about $24 billion educating students. Unfortunately, the state’s forecasts tell us our revenue over that period will be closer to $22 billion and we will spend every penny of our reserves to cover the shortfall. The often cited $1.8 billion in reserves is already being spent. Nearly $500 million is committed to a 6% raise for all district employees, including teachers. $600 million is being used to add 1,000 educators to schools to reduce class size and hire more nurses, counselors and librarians. The remaining funds are committed to fund ongoing budget deficits. L.A. Unified’s most recent report to regulators shows it will have about $1 million of reserves left at the end of that three-year period. You read that correctly: a $1 million cushion out of $24 billion in spending — virtually no margin for error.
Source: latimes.com – Los Angeles Times