LOS ANGELES (July 8, 2026) — The Los Angeles Unified School District received a letter from the Los Angeles County Office of Education (LACOE) regarding the District's fiscal outlook and reaffirmed its commitment to working collaboratively with county partners to strengthen the District's long-term financial stability while continuing to serve students.
The letter reflects LACOE's determination that the District meets the statutory criteria for a "Lack of Going Concern" designation under California law, noting that the District may be unable to meet its financial obligations in Fiscal Years 2027-28 and 2028-29, resulting in an increased level of fiscal oversight. As part of that process, LACOE has assigned a fiscal expert to work alongside the District and has outlined additional steps to support implementation of the District's Fiscal Stabilization Plan.
"This determination does not change our commitment to students, families or employees," Superintendent Andrés E. Chait said. "Our schools will continue to operate as normal while we work closely with LACOE to strengthen our long-term financial outlook. We welcome the opportunity to collaborate and remain focused on making thoughtful, responsible decisions that protect classroom instruction and student success."
Like many school districts across California, Los Angeles Unified continues to navigate significant fiscal challenges driven by declining enrollment, the expiration of one-time pandemic funding, rising operating costs and increasing long-term obligations. The District has acknowledged these challenges transparently in public meetings with members of the board, with District families, and with community and labor partners, and developed a multi-year Fiscal Stabilization Plan to address them.
The District also recently reached agreements with its employee unions that recognize the critical role educators and staff play in student success while continuing the work of implementing long-term structural budget solutions.
The District will continue reviewing LACOE's findings and recommendations and will work collaboratively with the County Office as required under state law. The District remains committed to transparency throughout the process and will continue providing updates to the Board of Education, employees, families and the public.
The District's priorities remain unchanged:
- Protect high-quality instruction and student services.
- Implement the Fiscal Stabilization Plan with fidelity.
- Work collaboratively with fiscal oversight agencies.
- Ensure the District's long-term financial sustainability.
The LACOE letter is available here.