La Unified School District faces budget cuts, staff layoffs and school closures due to falling enrollment

Los Angeles Unified School District (LAUSD) is set to implement significant budget cuts, staff reductions, and school consolidations as it struggles to balance its finances, according to reporting by The 74. The district, one of the largest in the United States, has been facing declining student numbers for decades, and the end of pandemic-related relief funds has added further pressure. Schools have already been notified of budget reductions, which will start in the 2026-27 academic year.

Declining enrollment and funding challenges

LAUSD Chief Financial Officer Saman Bravo-Karimi told The 74 that the district’s funding is closely tied to student enrollment, which has steadily declined over the years. “We have fewer students each year, and in LAUSD that’s been the case for over two decades,” he said. The district’s enrollment fell to 408,083 last year, down from a peak of 746,831 in 2002. Nearly half of the district’s zoned elementary schools are operating at half capacity or less, and 56 schools have seen rosters drop by 70% or more.

Bravo-Karimi explained that the expiration of one-time COVID-19 relief funds, which had provided substantial support, further reduced the district’s available budget. He said that in the current school year, LAUSD will spend about $2 billion more than it receives from state, local, and federal sources, a trend expected to continue in the next two years.

Planned savings and cuts

According to The 74, the LAUSD board recently approved a budget plan aimed at eliminating a predicted $1.6 billion deficit for the 2027-28 school year. The updated plan uses reserve funds and cost-cutting measures, including:

• $425 million by reclaiming unused funds from schools each year
• $300 million through reductions in staffing and central office budgets
• $299 million by cutting special funding for high-needs schools
• $120 million from unfilled school staffing positions
• $30 million through school consolidations
• $16 million by reducing student transportation

The district also contracted consulting firm Ernst & Young to model potential school closures and consolidations. While specific schools and numbers have not been disclosed, the shrinking student population makes such steps increasingly likely.

Impact on schools, staff, and communities

The planned budget reductions will affect both schools and staff. Some schools could face cuts of up to 15%, requiring difficult decisions on staff retention. Ortiz-Franklin, LAUSD Board Member for District Seven, told The 74 that while the district will try to minimize the impact on students, staff hired with one-time COVID funding may be let go. She added that several hundred additional layoffs could be announced in February after a staffing review.

Experts have weighed in on the changes. Marguerite Roza, director of the Edunomics Lab at Georgetown University, told The 74 that the cuts are “relatively mild” compared to other districts in California and across the country. However, she noted that as enrollments continue to decline, more significant restructuring may become necessary. “This really should be a signal to families,” Roza said. “After several years of really being flush with cash, this is not the financial position that LA Unified is going to be in moving forward.”

Despite financial challenges, Ortiz-Franklin said the district has made strong gains since the pandemic and remains committed to supporting students. “We would love to share good news, especially this time of year,” she told The 74. “But the reality is, it is really tough.
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