Los Angeles County Office of Education Superintendent Debra Duardo is once again warning LAUSD that the County may step in and take decision-making authority away from the LAUSD Board if it fails to adequately address concerns about fiscal solvency and submit a budget that maintains the required minimum reserve funds.
The sternly worded letter from LACOE is the latest in a series of warnings from the agency that oversees LAUSD’s budget, which took the unprecedented step in January of assigning a team of fiscal experts to help. The letter also arrives as voters consider whether to support a parcel tax on the June ballot to increase school funding.
LACOE gave LAUSD a “qualified certification,” citing district failure to address deficit spending, which has led to a “distressed financial condition.” LACOE also cited “inattention” to LAUSD’s $15.2 billion unfunded retiree healthcare liabilities (the promises made to future retirees, which the district has not set aside money to pay for) and its “inability to consider long-term effects of collective bargaining agreements.”
The LAUSD Board at last month’s meeting approved a Fiscal Stabilization Plan that included a 15 percent reduction in central office staff, but the budget the district submitted to the County still fell $3 million short of balancing the budget and maintaining the required 1 percent reserve fund through the 2020-21 school year. Click here to read more: http://speakupparents.org/speakup-board-watch-take-action/2019/4/2/as-voters-consider-school-parcel-tax-lacoe-threatens-takeoveragain