Budget Insights: An Overview of the Los Angeles Public Education Budget Process for Advocates report cover

Budget Insights: An Overview of the Los Angeles Public Education Budget Process for Advocates

An Overview of the Los Angeles Public Education Budget Process for Advocates

2023District Governance & Finance

Summary

The complex technical processes behind district budgeting can seem impenetrable to the public. This briefing demystifies the key steps in LAUSD's budget timeline and equips advocates to effectively engage district leadership on resource-allocation decisions that impact educational equity and student outcomes.

Key Findings

  • The majority of education dollars come from the state budget, so LAUSD is subject to volatility in California's revenue system.
  • Most state K-12 funds flow through the Local Control Funding Formula (LCFF), which focuses on equity — but dollars don't always reach the highest-need schools.
  • The biggest share of the LAUSD budget goes to schools mostly as staff positions rather than dollars, with very little flexibility short of layoffs.
  • LCFF funding reaches intended students imperfectly: about 55 cents of every LCFF dollar is spent at the school that generated the higher-need funding.
  • Within the district general fund there's essentially no equity adjustment for different student circumstances or historical outcomes.
  • By the time the state confirms priorities, one expert suggested '95 percent of the district's budget is [already] complete.' Most funding is non-discretionary or restricted.
  • SENI dollars are the largest area of school flexibility; the highest-need school now receives roughly three times as many SENI dollars per student as the lowest-need.

Methodology

We spoke with three budgeting experts across research organizations, LAUSD nonprofits, and former LAUSD board staff about the statewide and local budgeting process, key players, equity, and advocacy opportunities. Findings were included when corroborated by multiple interviewees or directly cited resources.

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Report Highlights

The sections below pull out the major points from the full report — the data, the examples, and the context behind the findings.

The LAUSD Budget at a Glance

$18.8B
allocated across all funds in SY2023-24 to serve 420,454 students
>95%
of California’s state K-12 spending flows from the state General Fund, tying LAUSD to state revenue swings
~55¢
of every LCFF dollar is spent at the school that generated the higher-need funding
$700M
in SENI funding in the 2023-24 budget — just 3.7% of the total budget, but the largest area of school flexibility

Following the Money, State to School

The majority of annual funding for California’s K-12 public schools comes from the state budget — and more than 95 percent of state K-12 spending comes from the General Fund of the California state budget. Because Proposition 98 ties the minimum K-12 guarantee to overall state revenue and student attendance, LAUSD is exposed to the same volatility that drives California’s revenue system up and down.

That reliance collides with an inconvenient calendar. The state, district, and school budgeting processes all unfold simultaneously, so many decisions are made with incomplete information. The LAUSD board approves its budget in June, before the official state budget is signed into law, then adjusts once the state budget and fall enrollment data arrive. By the time the state confirms its priorities, one LAUSD expert observed, most of the district’s budget is already locked in.

WHAT IS THE LCFF?

Enacted in 2013, the Local Control Funding Formula (LCFF) restructured how California finances education. It provides districts a base grant for every student, plus supplemental and concentration grants for high-need groups — students from low-income families, English learners, and foster youth. It is designed to be equity-focused, but dollars reach intended students imperfectly: an investigation into LCFF distribution found that about 55 cents of every LCFF dollar is spent at the school that generated the higher-need funding.

Where Equity Enters — and Where It Doesn’t

The biggest share of the LAUSD budget reaches schools as staff positions rather than flexible dollars, leaving little room to maneuver short of layoffs. And within the district’s general fund, budget experts noted, there is essentially no equity adjustment for different student circumstances or historical outcomes — most of it is allocated on a per-student basis without differentiation based on need.

The clearest exception is the Student Equity Needs Index (SENI). SENI dollars are the largest area of school-level flexibility, and the allocation has grown dramatically: $700 million in the 2023-24 budget, up from $282 million in an earlier version and just $20 million before that. As a result, the highest-need school in the district now receives roughly three times as many SENI dollars per student as the lowest-need school. Even so, that $700 million is only about 3.7 percent of the $18.8 billion budget — a powerful equity lever, but a small one.

95 percent of the district’s budget is [already] complete.

LAUSD budgeting expertOn how little remains flexible by the time the state confirms its priorities

5 Tips for Education Advocacy That Move the Needle

  1. Engage year-round. For the annual budget, concentrate heavy engagement between September and December; pursue larger structural changes, like staffing formulas, on a multi-year timeframe, and board resolution goals in the spring ahead of April–May board activity.
  2. Build expertise. Command of budget facts — even in one specific area — lends credibility and sets advocates apart, though strong coalition-building and relationships can move issues without deep technical mastery.
  3. Cultivate relationships and allies with board members and their staff, the superintendent’s office, and district-level budget designates.
  4. For state-level advocacy, build consistent relationships with the governor’s office staff to shape the January proposal, and with legislative budget and education subcommittee staff for issues that don’t make it in — starting no later than August for the next year’s budget.
  5. Choose up to two issues to engage deeply, while staying ready to work within hot-button issues when the opportunity arises.
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