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LAUSD considers $21 billion spending plan. The problem: revenue isn’t keeping up

πŸ“° LAist πŸ• June 23, 2026 at 5:00 AM
A yellow school bus with green wheels is a parked next to several other buses. The side of the bus reads Los Angeles Unified and there are palm trees in the background.
The second largest school district in the country reports that 67% of its 1,300 school buses rely on non-diesel fuels including propane, natural gas and electricity. (Mariana Dale / LAist)

The Los Angeles Unified School Board is scheduled to vote Tuesday on a nearly $21 billion spending plan for the next school year.

The budget includes raises, class size reductions and increased mental health support that are part of new contracts with the district’s largest labor unions.

There is also nearly $5 billion in school construction and renovation projects, which are funded by voter-approved bonds β€” that money cannot be shifted to pay for salaries or other school needs.

LAUSD’s budget next year exceeds expected revenue by $2 billion. The district will, for the third consecutive year, pay the difference with reserves.

However, district staff say by the 2028-29 school year, the budget deficit will grow to $3.6 billion. The board recently approved a fiscal stabilization plan to solve the deficit β€” but which will likely result in the elimination of thousands of jobs.

The board’s meeting begins at 10 a.m. Tuesday and will stream online.