LAUSD Says Furloughs and Borrowing Will Stop Layoffs (CA)

April 14, 2011

Facing a deficit of $408 million for the 2011-12 school year, the Los Angeles Unified School District is considering an emergency plan that would require all employees to take 12 furlough days in the coming year and might also cut the school calendar by up to one week, the Daily News Los Angeles reports.

The proposal has been passed by the school board and is now being considered by the nine LAUS D unions. The furlough plan is projected to save up to $168 million. For the rest of the shortfall, the district is hoping to tap other LAUSD accounts such as health, welfare and and unused workers’ compensation funds. Incoming LAUSD Superintendent John Deasy calls the situation dire:

    “This truly is a tourniquet, it’s no longer a Band-Aid. But I believe we must do this … to stabilize our district for a year.”

Deasy, who’s the author of this proposal, says it is superior to the one considered before because it would allow the district to bring back 80% of people now slated for layoffs. Although the school budget for next year had already been agreed upon, this emergency action was required due to failure of the legislature to get tax extension measures on the ballot this June. As part of the deficit reduction, the district will be borrowing up to $127 million from the health and welfare benefits committee and plans to underfund district accounts such as worker’s compensation by roughly $9 million.