LAUSD Budget Crisis
Presentation
2008-09
Protecting Education Funding
for Our Students
www.LAStudentsCount.org
Budget Realities:
Where We Are Today
Governor Announces $14.5 Billion Budget
Deficit, $4.8 Billion in Education Cuts
• In January, Gov. Arnold Schwarzenegger announced a
projected $14.5 billion deficit in the State Budget for 2008-09.
• Already, the State’s Legislative Analyst Office has forecasted
a $16 billion budget shortfall based on some national
economic forecasts.
• One year after declaring 2008 “The Year of Education,” the
Governor also announced $4.8 billion in cuts to education
funding statewide.
• The Governor has ruled out any tax increases.
Per-Student Spending Continues
to Drop in California
• According to Education Week, California ranks 48th in
education spending in the U.S. (including the District of
Columbia) when cost of living is considered
• The National Education Association reported that California
schools spent about $700 per student less than the national
average in 2004-05
• California has ranked below the U.S. average in K-12 per-
student spending for the last decade
Budget Realities:
Where We Could Be Tomorrow
How Do the Proposed Cuts Impact LAUSD?
• The Governor’s proposed cuts translates into a staggering $460 million
budget shortfall for the LAUSD
• Based on the Governor’s budget proposal, the LAUSD cannot balance its
budget without impacting classroom programs and staffing
• The proposed cuts threaten to increase class size, reduce per-student
spending and reverse gains made in the District’s Academic Performance
Index (API) scores
• In addition, the cuts could increase the dropout rate, lower graduation levels
and widen the achievement gap between minority students and the District’s
general classroom population
A $460 Million Budget Cut is Equivalent to:
• Closing 22 LAUSD high schools, or
• Closing all LAUSD schools and offices for 12 days, or
• Reducing 5,750 employees from our workforce of
82,000, or
• An 8-percent pay cut on all employees, or
• Cutting the cost of employee health benefits by more
than half.
NOTE: These are not recommendations but illustrations to show the magnitude of the
cuts that have been proposed.
How Are LAUSD Dollars Distributed
• More than 90 percent of general fund spending occurs at the
school level
• Almost two-thirds of general funds are set aside for teachers,
classrooms aides, instructional materials, etc.
• These funds also pay for administrators, counselors, nurses,
librarians, office workers, custodians, etc.
• All told, the majority of general fund dollars cover staff costs
LAUSD 2007-08 Budget - General Fund
Spending by Type of Expenditure
0.7% Certificated Salaries
6.0% 1.0%
Employee Benefits
9.5%
Classified Salaries
48.2%
Other Operating Expense
14.6% Books and Supplies
Other Outgo
Capital Outlay
Salaries and benefits account for
20.0%
82.8% of the budget.
Budget Realities:
The Details
LAUSD programs that will be impacted
by the proposed $460 million budget cut
Categorical Unrestricted
(“Specific-purpose”) General
Funding Funding
-$229 million -$231 million
Cuts to “Specific-Purpose” Categorical Programs
Governor’s Proposal to Cut $229 million
Description:
Funds from the State or Federal government granted to schools or
districts that must be spent for a specific purpose.
Examples of Programs:
Targeted Instructional Improvement Grant (TIIG):
To maintain the District’s court-ordered and voluntary
desegregation efforts, and to meet needs of underachieving
schools. Proposed $62 million cut will impact:
• Class-size reduction programs
• Pre-K School Readiness Language Development program
• Transportation for magnet program
Cuts to “Specific-Purpose” Categorical Programs
Description:
Funds from the State or Federal government granted to schools or
districts that must be spent for a specific purpose.
Examples of Programs:
Special Education
Funds to be used to provide services required by an individualized
education program pursuant to the federal Individuals with
Disabilities Education Act. Proposed $41 million cut will impact:
• Teachers, aides & instructional materials
• Nurses, counselors and psychologists for students
• Transportation services
Cuts to Unrestricted General Funds
Governor’s Proposal to Cut - $231 million
Description:
Money granted to school districts for general purposes. California
school districts receive general purpose money based on a per-pupil
revenue limit. They have discretion to spend this money as they see fit
for the day-to-day operation of schools.
Examples of Programs:
• Teachers
• Classroom aides
• Support staff
• Instructional materials
A $231 million cut to unrestricted LAUSD
revenues is equivalent to:
• A 6.4 percent across-the-board cut in employees funded with
unrestricted revenues would mean:
– 1,630 fewer teachers, and
– 248 fewer office and clerical workers, and
– 177 fewer custodians and gardeners, and
– 113 fewer nurses, counselors, etc., and
– 82 fewer principals or assistant principals, and
– 42 fewer school safety workers, and
– fewer other employees
Budget Realities:
What’s Next?
Our Students Deserve Better!
• Governor’s budget proposal would be disastrous for schools
and students
• Proposal is inconsistent with goal of improving student
achievement
• Cuts like these cannot come from simply gaining efficiencies
or improving systems – they will have real impact in
classrooms
• LAUSD has the largest population of English learners and a
diverse group of special needs students. This budget could
rip the heart out of the programs serving these students.
• LAUSD is prepared to fight for our students.
LAUSD Action Plan
• Inform people about the crisis:
– parents,
– employees,
– Business & community leaders
– education advocates
• Build and join coalitions to fight to restore K-12 funding
• Identify necessary actions to balance the 2008-09 budget,
including some that may be reversible
• Keep people informed and engaged to work with us to protect
education funding for our students.
Thank You!
Protecting Education Funding
for Our Students
www.LAstudentsCount.org