Days After EE Fails, LAUSD Submits ‘Tenuous’ Budget Plan That Freezes Wages and Healthcare Costs

Two days after voters rejected a measure to provide new funding to Los Angeles schools, LAUSD unveiled a new three-year budget that freezes future employee wages and healthcare costs, which LAUSD Superintendent Austin Beutner acknowledged was essentially a fiction generated to satisfy the requirements of county regulators.

 “It’s just not the real world,” Beutner said.

That’s because healthcare costs are actually rising, and the deal to keep healthcare payments flat expires next December, at which point district healthcare contributions are subject to labor negotiations with all its employee unions. Employee wage contracts will also be coming up for negotiations again.

Beutner admitted that this budget was intended to meet the letter of the law while buying more time to find new revenue now that voters have rejected Measure EE.

“As we look at the third year of this forecast, it’s tenuous,” Beutner said. “It’s tenuous because it assumes there are no wage increases. We’d expect to provide a wage increase to those who work in schools. We don’t expect our healthcare costs to remain flat. The third year is probably optimistic in terms of what reality might look like, in which case we don’t have the funding to provide for that third year.” Click here to read more: