LAUSD Seeks State Funding for New Union Contracts

District faces financial challenges after avoiding teacher strike with last-minute deals

Apr. 16, 2026 at 4:57am

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A bold, colorful silkscreen print depicting a repeating pattern of stacked textbooks in vibrant neon hues, conceptually representing the financial challenges facing the Los Angeles Unified School District as it works to fund new labor agreements.LAUSD's new union contracts will strain the district's budget, potentially leading to difficult decisions about staffing and school closures.Los Angeles Today

After reaching new labor agreements with unions representing 70,000 workers, the Los Angeles Unified School District is now turning to state officials for help funding the contracts, which are estimated to cost over $1.17 billion annually. LAUSD's acting superintendent acknowledged the district will need financial assistance from the state to honor the deals, but state officials have not yet committed to providing additional funding.

Why it matters

The new union contracts, which include significant salary increases and benefit improvements, come as LAUSD faces declining enrollment and rising costs, putting the district on shaky financial footing. Without additional state support, LAUSD may be forced to make difficult decisions like staff cuts and school closures to afford the new labor agreements.

The details

The tentative agreements reached with the United Teachers Los Angeles, Service Employees International Union, and Associated Administrators of Los Angeles unions include an 11.65% salary scale increase over two years for teachers and administrators, as well as a 24% wage hike for bus drivers, custodians and special education workers. The deals also set the starting teacher salary at $77,000 per year and ensure healthcare benefits for increased work hours.

  • The new union contracts were reached in April 2026 to avoid a strike.
  • LAUSD is currently seeking additional state funding to help cover the estimated $1.17 billion annual cost of the new agreements.

The players

Andres Chait

The acting superintendent of the Los Angeles Unified School District.

Aaron Smith

The director of education reform at the Reason Foundation, a think tank.

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What they’re saying

“One takeaway is that the state is on shaky financial footing. I don't expect that LA Unified or other school districts throughout the state can expect a windfall of cash to pay for these new benefits and salary increases.”

— Aaron Smith, Director of Education Reform, Reason Foundation

“It's clear, especially with the new deal, they're going to have to cut staff and close schools. There's no way around it.”

— Aaron Smith, Director of Education Reform, Reason Foundation

What’s next

State officials have not yet made a final decision on providing additional funding to LAUSD to help cover the costs of the new union contracts. The tentative agreements still need to be ratified by the unions.

The takeaway

The new labor deals reached by LAUSD highlight the financial challenges facing the district, which must now turn to the state for help funding significant salary increases and benefit improvements for its workforce. Without additional state support, LAUSD may have to make difficult decisions like staff cuts and school closures to afford the new contracts.