August 19, 2007 - We are now 49 days without a state budget. We have been reading about preschool programs that are in danger of going out of business without their state subsidy – but what is the impact on LAUSD of there being no state budget?
THE GOOD NEWS is that two-thirds of LAUSD's budget is independent of the state budget process and IS being paid.
THE BAD NEWS is that about one third of LAUSD's expenses - paying for maintenance and operation, employees at central and local district offices, and the expenses of summer school and year-round programs is NOT being paid. And on Sept 5 all LAUSD students and employees will be "back to school"!
One third of LAUSD's annual budget is: $1.9 billion with a "B",
To give you an idea of the impact of this, figure $1.9 billion is $158 million a month. That money will eventually be paid – there is little doubt about that …but if you don’t have that $158 million to invest for one month, at 3%, you lose over $400,000 (or $13,333 a day) And that interest will NEVER be reimbursed – it comes out of the general fund - ie: classroom operations!
$13,333. is approximately the annual revenue (
$400,000 equals something like the annual salary and benefits package for six teachers …lost every month.
LAUSD has ALREADY irretrievably lost the