Los Angeles

A:

Los Angeles County school districts will have to shed an estimated $1 billion when the first dollar goes into Proposition 2's School Account. The cap will force the reduction of Los Angeles County school districts' local carryover funds from an average of 12% now, to just 5%.  (Los Angeles Unified will be capped at 3%; Long Beach Unified at 4%; most smaller districts at 6%).

Compare these allowed carryovers with California Department of Education (CDE) and Government Finance Officers Association recommendations of 15-17% in reserves -- and the state's late payments to schools in all recent fiscal years.  Los Angeles County schools will be allowed to carry a cushion of just $575 million forward, yet the state owed them $2,500 million at the end of 2012 (yes, $2.5 billion), $1,500 million at the end of 2013, and $1,200 million just this June 30th.

As you can see from the downloadable table below, LA Unified, for example, would just get to hold $170 million -- yet the state owed it $1 billion when school let out in June 2012, and $600 million both last year and this June 30th.  LA Unified is also perennially in "qualified financial certification" (based on the CDE's current projections, it may not meet its financial obligations for the current or next two financial years), but would nevertheless be expected to spend down $360 million of its reserves before the end of the school year.

Note that many other districts are shown in red because the CDE "qualified" its certification of the districts' financial conditions during some or all of the 2012-2014 period.  Despite their challenged financial state, these districts would have to pay down millions of their total ongoing operating funds were the State's 'school savings account' to receive any deposits.

 Los Angeles data table

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