LAUSD’s dire finances could lead to state takeover in 3 years if parcel tax fails

Los Angeles Unified School District will run out of money in three years unless it makes drastic cuts in spending or voters pass a hefty parcel tax on the June 4 ballot, according to the district’s most recent budget.

In the aftermath of a new contract for teachers to end a strike earlier this year, county education officials have warned they could step in to take control of the finances at the nation’s second largest school district if the forecast doesn’t improve.

The financial situation is so dire that the estimated $300 million to $500 million generated annually from the 16-cents-per-square-foot tax will not prevent the district from cutting into its reserves.

Current projections estimate the district will spend $1.5 billion more than it brings in over the next three years. After draining its reserves to stay afloat, the district expects to drop more than $700 million into the red in 2021-22.  Click here to read more: https://www.dailybreeze.com/2019/05/12/lausds-dire-finances-could-lead-to-state-takeover-in-3-years-if-parcel-tax-fails/