L.A. Unified to Reduce Deficit, Cover Teachers’ Raises

The financial outlook for the Los Angeles Unified School District has brightened somewhat since the first budget projections late last year.

In his second interim report, chief financial officer Joe Zeronian added $45.7 million to the district’s projected income, reducing its projected deficit for the year from $126 million to $81 million.

The deficit, largely attributable to a 15.3% salary and benefits package negotiated with the teachers union, is coming out of the district’s large carry-over of nearly $606 million from the previous year.

Much of the carry-over is restricted, however, leaving the district about $75 million in contingency reserves and about $22 million in undesignated funds.

Zeronian said the new projections suggest that the district was successful in moving funds into salaries without damaging programs.