New Superintendent Appointed Amid Financial Crisis in LAUSD

A close associate of Mayor Karen Bass is set to lead the Los Angeles Unified School District (LAUSD), which is currently facing major financial challenges.

Andres Chait was appointed as the superintendent on Wednesday, following the unexpected resignation of Alberto Carvalho amidst an FBI investigation into corruption.

“It’s an incredible honor to be the superintendent of Los Angeles Unified,” said Chait, who has dedicated over 30 years to the district. “This community has truly shaped my life and career.”

The district is grappling with a significant financial gap, estimating almost $2 billion between its expenditures and anticipated revenue. Layoffs are looming, and enrollment continues to decline.

Chait’s swift rise follows his role as a critical partner to Mayor Bass in urgent labor talks, where he helped avert a district-wide strike and pushed for substantial pay increases that critics argue are unsustainable.

This week, LAUSD approved a $20.6 billion budget, despite projections of only $18.6 billion in revenue.

In an attempt to bridge the financial gap, officials plan to utilize reserve funds, while preparing for potential layoffs, affecting hundreds of employees with job protections and about 1,000 more without protections.

Furthermore, additional layoffs are anticipated over the next three years.

The financial stress on the district has been intensified by rising labor and healthcare costs, inflation, the ending of federal pandemic relief funds, and a history of declining enrollment.

Currently, LAUSD serves around 390,000 students from transitional kindergarten through 12th grade, a significant drop from its size in the early 2000s, according to reports.

Chait’s significant involvement in labor negotiations was marked by just hours of talks before a planned strike by three unions that would have closed schools across the city.

After lengthy discussions, Bass commended the district’s leadership, especially Chait, for their collaborative approach.

“The cooperation from the school district leadership, the superintendent, and the entire board made a notable impact,” Bass expressed at a City Hall press conference.

Supporters argue this agreement prevented a potentially damaging strike, while critics caution that it adds financial burdens as the district’s fiscal stability weakens.

Chait’s new role comes with a substantial compensation package funded by taxpayers, reportedly earning $395,867 annually, along with a $250 monthly expense account and the use of a district vehicle and driver.

Just 20 months prior, he was earning $278,205 as the school operations director.

Although the school board has yet to finalize the specifics of Chait’s official superintendent contract—such as any possible raises or additional perks—the financial situation remains pressing.

Interestingly, during the FBI investigation pertaining to Carvalho, taxpayers were effectively covering the salaries for two superintendents. Carvalho continued to receive his annual salary of $440,000 while on administrative leave, alongside an extra $50,000 for his retirement plan.

It remains unclear whether Carvalho will receive severance pay following his resignation.

Chait took control of the district on February 27, just two days after law enforcement officials conducted raids on Carvalho’s home and office as part of the investigation.

This investigation reportedly includes scrutiny of Carvalho’s dealings with the firm tasked with developing a troubled AI chatbot for the district.

So far, Carvalho has not faced any criminal charges and insists on his innocence.