LAUSD Approves $18.8B Budget Amid $3B Deficit, Enrollment Decline

The Los Angeles Unified School District (LAUSD) Board of Education has unanimously approved an $18.8 billion budget for the 2025-26 fiscal year that maintains current staffing levels and increases funding for equity programs, including $175 million for the Black Student Achievement Plan and $2 million for LGBTQ+ student support. Despite these investments, LAUSD faces a nearly $3 billion structural deficit, largely due to declining student enrollment and spending exceeding revenues, prompting the district to use reserves and implement a Fiscal and Workforce Stabilization Fund. The budget includes a moratorium on salary increases for senior staff and redirects funds originally meant for post-employment benefits to stabilize finances. Activists and union leaders have praised the increased support for marginalized student communities but are pressing for higher wages and expanded programs amidst financial uncertainty. LAUSD must prepare a fiscal stabilization plan to address the ongoing budget shortfall, with potential future cuts including school closures and layoffs, as the district projects financial insolvency by 2027-28 without corrective measures. Officials emphasize transparency and adaptability while balancing commitments to student equity and the district's economic reality.