LOS ANGELES (March 10, 2026) — Today, Los Angeles Unified voted to approve the District’s positive certification of its 2025-26 Second Interim Financial Report, resulting in the District’s submission of the 2025-26 Second Interim Financial Report to the Los Angeles County Superintendent of Schools (CSS).
The Report confirms that the District expects to meet its financial obligations for the current fiscal year and the next two fiscal years while also highlights measures needed to ensure long-term fiscal stability.
This projection relies on significant fiscal actions, including planned reductions in force, and does not yet account for potential increases associated with ongoing labor negotiations. For that reason, District leaders emphasized that continued planning and corrective action will be necessary to address long-term fiscal pressures and protect the sustainability of the school system.
“Los Angeles Unified remains able to meet its financial obligations today and through the next several years,” Acting Superintendent Andrés E. Chait said. “But responsible stewardship requires that we address the long-term realities facing public education. Fiscal stability is the foundation that allows us to continue investing in our students, our schools, and our employees.”
The District’s financial outlook reflects trends affecting school systems across California and the nation, including declining student enrollment, the expiration of federal pandemic relief funding, and rising operational costs. These factors create ongoing fiscal pressures that districts must address to maintain balanced budgets in future years.
While Los Angeles Unified is able to meet its financial commitments during the current multi-year projection period, projections show that expenditures will continue to outpace ongoing revenues in the years ahead without adjustments.
To address these challenges, the District has begun implementing a long-term fiscal stabilization strategy designed to protect classroom instruction while aligning the district’s budget with ongoing revenue.
The District’s approach focuses on several key priorities:
- Protecting core investments in students and schools, including academic programs and direct services.
- Maintaining required reserves and responsible financial planning to ensure continued fiscal stability.
- Aligning spending with enrollment trends and ongoing revenue as one-time pandemic funding has expired.
- Improving operational efficiency across the district while safeguarding essential services.
District leaders emphasized that taking action now is essential to protecting the long-term health of the school system.
“Our responsibility is to meet today’s financial obligations while also ensuring Los Angeles Unified remains strong and sustainable for the students we serve now and for the generations that follow,” Chait said.
The Second Interim Financial Report reflects the District’s ongoing commitment to transparency, responsible financial stewardship, and long-term planning to support student success.
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