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LAUSD Faces Budget Crisis After Sharp Enrollment Drop

Preliminary enrollment data show about four percent fewer students with projected reserves that could be exhausted in 2027–28 without deeper cuts.

Overview

  • District financial updates show enrollment has fallen roughly four percent this year, which reduces state funding because California pays schools based on daily attendance.
  • LAUSD’s chief financial officer says each one percent enrollment loss costs about $20 million a year, multiplying the district’s revenue shortfall.
  • Board-approved fiscal stabilization includes a $3.5 billion savings plan that relies in part on school consolidation and repurposing to produce roughly $30 million a year beginning in 2028–29.
  • The district has already cut more than 600 central‑office jobs and is under heightened scrutiny after the county assigned a fiscal expert and warned local governance could be limited if finances do not improve.
  • District leaders say they will begin community conversations and hold a public briefing this month about possible school consolidations and closures to try to preserve stronger, better‑resourced schools.