For Immediate Release
August 3, 2020

Contact:
Isabel Alegria, ialegria@publicadvocates.org, 510-541-5428
Duc Luu, dluu@publicadvocates.org, 857-373-9118
Alexandra Patchen, APatchen@cov.com, 212-841-1102

California Department of Education Finds LAUSD Violated State School Funding Law in 2018-19 & 2019-20 Spending Plans

San Francisco – The California Department of Education has determined that the Los Angeles Unified School District (LAUSD) violated the state’s education reform law known as the Local Control Funding Formula (LCFF) by improperly accounting for state funds intended for high need students in its spending plans covering the 2018-19 and 2019-20 school years.

The decision stems from a complaint filed a year ago by Public Advocates Inc. and Covington & Burling LLP on behalf of LAUSD parents Elvira Velasco and Ana Carrion. Both have children in Los Angeles public schools. Over $1.1 billion in supplemental & concentration funds given to LAUSD by the state for services for low-income students, English language learners and foster youth are involved in the complaint. In October of last year, both LAUSD and the other respondent, the Los Angeles County Office of Education (LACOE), made several improvements to the district’s spending plan to address the complaint. Unsatisfied, the complainants appealed to the Department for more meaningful improvements.

“I’m gratified to see our complaint finally justified,” said Ana Carrion, who has one child in LAUSD, and four others who have graduated. “Through the spending plans, LAUSD is supposed to transparently show how each dollar is directed at our children and used effectively to serve their needs. They didn’t,” she said.

In one case, LAUSD created a spending category that bundled $800 million worth of different types of services to different schools and grade levels and labeled it as a single “action.” The CDE ruled such bundling of multiple actions is illegal.

“When we can’t see what actions the district is taking,” said Ms. Carrion, “we can’t see how our funds are being spent, and we can’t engage to hold the district accountable. We need the truth, and we need transparency if we’re going to transform the system to serve our children.”

In its decision, the CDE also faulted LAUSD for the way in which it disbursed $460 million in school-level expenditures. Parents had complained that after looking at the spending plans provided to them by LAUSD, it seemed funds sent to school sites just dropped into a “black hole,”—schools received funds but never identified how they were used, in amounts no one knew, and that were not clearly justified as supporting the needs of low-income students, English learners or foster youth as the law says they must.

“At the heart of LCFF is the requirement that district be fully transparent about how they are spending their money so that community stakeholders can provide input into decisions and hold districts accountable for using funding equitably and effectively, said Laura Muschamp, Of Counsel with Covington & Burling, LLP. “This decision vindicates those values and provides clear guidelines to LAUSD and districts across the state on what spending plan transparency looks like and why it is essential for community accountability.”

The expenditures of state “supplemental and concentration” funds targeting high need students are reported through annual spending plans—known as LCAPS—that undergo community review and that by law must demonstrate how the funds are used and how they will support the district’s high need students. In their complaint, Ms. Velasco and Carrion had asked that LAUSD be required to amend their LCAPs to comply with the law. In its decision, the CDE did not ask LAUSD to amend its past LCAP but did order LAUSD to ensure that these violations do not occur in the 21-22 LCAP, which will be adopted in June 2021.

“I’m really glad that the State agreed with us on most of the concerns we raised in our complaint about transparency, accountability, and equity, said Elvira Velasco, who son attends public school in Los Angeles. “I hope that LAUSD will take this decision seriously and implement the required changes to improve education for the highest need students in LAUSD, especially during this time of COVID-19.”

LAUSD does not have a current LCAP because of the COVID-19 crisis. There will be Learning Continuity Plans for school districts throughout California instead, which must be completed by September 30th.

Said Nicole Gon Ochi, senior staff attorney with Public Advocates “The first test of whether LAUSD is paying close attention to the CDE’s decision will be this Fall’s Learning Continuity Plans which also call for transparency around the specific actions districts are taking to address learning in a time of COVID and how they are continuing to justify their use of supplemental and concentration funds as supports to high need students.”

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For the 7/30/20 decision by CDE on LAUSD appeal, click here
For the 7/30/20 decision by CDE on LACOE appeal, click here

For a copy of the 7/11/19 original complaint, click here
For the 10/4/19 appeal of LAUSD decision, click here
For the 10/28/20 appeal of LACOE decision, click here

Public Advocates Inc. is a nonprofit law firm and advocacy organization that challenges the systemic causes of poverty and racial discrimination by strengthening community voices in public policy and achieving tangible legal victories advancing education, housing, and transit equity.

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