Sunday, April 9, 2017

Is LAUSD Really Going Broke? - LA Progressive

Is LAUSD Really Going Broke? - LA Progressive:

Is LAUSD Really Going Broke?

LAUSD Going Broke

All of the recent years for which final (“actual”) budget data are published show every single annual budget has finished in the black. This graph tracks the inflow of revenues (sum of dark and light grey bars), which have outpaced the outflow of expenditures (blue bar) in the LAUSD General Fund (GF) over the last eight years.
While the entirety of the LAUSD budget includes various capital and internal funds, for the purposes of tracking the actual operating budget, these GF revenues and expenditures are of most importance. The amount unspent every year is represented by the green bar, and labeled in green. “▲” green figures indicate that the net (what’s left after expenditures come out of revenues) is ‘positive’; the GF was operating without a loss. Both “restricted” (e.g., Federal Title 1 (low income) funds) and “unrestricted” (e.g., discretionary funds available to address school-site-specific priorities) funds are included here. Prior to 2007 GF expenditures were reported a little differently so the trend isn’t comparable, but those budgets were also balanced.

Recent school board candidate’s statements casting shade on LAUSD’s current solvency are just wrong.

So recent school board candidate’s statements casting shade on LAUSD’s current solvency are just wrong.
But what about the future, is the District simply swirling that bankruptcy toilet, circling inevitably toward the abyss? Even if currently flush, how well can past financial performance predict the future?
The District’s Chief Financial Officer (who just resigned after 10 years of constitutional, if not justifiable, worry), publishes a projected budget for one and two years beyond the current operating year. That current operating year’s budget is finalized in June prior to the start of the upcoming school year. And there’s a big accounting midyear to check up on things.
So that means there are four forecasts for any given year, snapshots of how budget forecasts Is LAUSD Really Going Broke? - LA Progressive:


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