Public school districts in Southern California are facing declining enrollment, with families opting for alternatives like charter schools, private schools, and homeschooling. The COVID-19 pandemic has exacerbated this trend. A report by the National Center for Education Statistics predicts a 15.7% drop in statewide enrollment by 2031-2032.
With dwindling enrollment and federal relief funds running out, school districts are facing budget deficits. LAUSD is projected to have a $94.5 million deficit, Long Beach Unified $54 million, and Santa Ana Unified a staggering $180 million deficit. Despite the financial strain, California has been slow to close underutilized schools, with only seven closures statewide in 2023-2024.
The state has a hold harmless provision allowing schools to receive funding for “ghost students,” costing taxpayers $4 billion in 2022-2023. As federal relief funds expire and the state budget outlook dims, school districts must make tough decisions to balance their budgets. Policymakers are urged to focus on serving current students and ensure accountability in resource management. Aaron Garth Smith of the Reason Foundation emphasizes the need for school closures and other cost-saving measures to ensure fiscal sustainability.
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