Los Angeles taxpayers are facing a significant financial burden following an agreement by LAUSD to compensate workers across three different unions, which successfully prevented a last-minute strike.
The financially struggling school district announced on Tuesday that it reached a tentative deal to provide substantial raises for its employees, despite students in the district reportedly underperforming compared to their peers statewide, and amidst ongoing federal and local investigations into the district’s leadership.
As union members prepared to mobilize for a strike, the district consented to three separate contracts amounting to nearly $1.2 billion annually, avoiding a disruption that would have led to school closures. This information was reported by the Los Angeles Times.
The financial outlay includes roughly $490 million for the Local 99 Service Employees International Union, around $650 million for United Teachers Los Angeles (UTLA) members, and $75 million for pay increases related to Los Angeles associate administrators. Additionally, the district has promised to reverse layoffs affecting hundreds of employees.
Acting Superintendent Andres E. Chait, who is currently stepping in for Abelto Carvalho amid a federal inquiry into Carvalho, expressed uncertainty about where the district will source the funds for these substantial pay raises. He remarked at a news conference on Tuesday that considering their financial commitments is essential, emphasizing that they would look internally to determine how to allocate funding.
Chait noted, “There are ongoing discussions regarding subcontracting and using in-house services, so we are, of course, focused on what we can do.”
To secure more funding for the district, Chait mentioned that union leaders, along with Los Angeles Mayor Karen Bass, would be reaching out to Sacramento. There are concerns from various parties regarding how the district plans to accomplish this funding, as highlighted by commentators.
Pedro Noguera, an educator, cautioned that “the only way for districts to raise money may be to lay off a lot of people, unless they’re hiding funds—which I suspect is not the case.” He added that the district has lost over 200,000 students in the last 15 years without corresponding reductions in employees or schools, describing the situation as unsustainable.
Lance Christensen of the California Policy Center referred to the unions’ actions as “extortion,” arguing that these agreements would further complicate LAUSD’s financial troubles without enhancing educational delivery to a shrinking student population.
Workers in the Service Employees International Union Local 99 will see the most significant pay increases, with a 24% raise over a three-year contract period, impacting roles such as teacher aides, campus aides, administrators, and bus drivers.
The union also ratified an increase in work hours, halted layoffs for technical support staff, expanded medical benefits, and instituted limits on outsourcing work. Notably, the union had not entered into a new agreement since June 2024.
Meanwhile, UTLA, which represents around 37,000 educators, counselors, psychologists, and librarians, reached a tentative agreement on Sunday with the district that includes a 14% pay raise over two years, alongside an increase in starting teacher salaries from $68,965 to $77,000.
The governing union for roughly 3,000 principals and assistant principals also secured a raise of about 12% over two years.
The California Post has sought further comments from LAUSD and Mayor Bass’s office. While these agreements still need to be ratified by union members and the school board, they will enable schools to remain operational.
