The promises made to these employees are false and empty promises, though, because LAUSD has not put aside money to pay for its benefits promises and simply cannot afford to pay them without the district either going bankrupt or drastically raising class sizes, laying off teachers and being unable to function in the future.
In fact, LAUSD is the only school district in the country on a list of top 10 government agencies that cannot afford its retiree health benefits. An Independent Financial Review Panel has called for immediate action to stave off this impending financial crisis, and the LAUSD Board will hear a second report Tuesday from the Independent Analysis Unit calling on the Board to set make the necessary changes to help pay its future benefit promises. The IAU report is clear that the district simply cannot afford to "pay as you go" for these promises that are increasingly coming due.
Despite dire warnings from financial experts, LAUSD so far has not demonstrated the political will to take action, and the district just seems to be hoping the state will bail it out so it doesn’t have to make the hard choices itself. Hope, however, is not a plan. And relying on others to fix your problems is not leadership.Read More