Out of Control Policy Blog

Los Angeles Unified's Unfunded Debt

Today's Los Angeles Daily News examines the scary workers comp. and health insurance obligations of the Los Angeles Unified School District.

Lansing said he has been trying for two years to get the board and staffers to address the issue of unfunded debts: $6 billion to provide health insurance to retirees and their families, as well as half the district's $685 million in workers' compensation liability.

The district pays the bulk of its workers' compensation and retiree benefits out of its $5.8 billion general fund - the same fund used to pay for teachers' salaries, textbooks and school supplies.

"That's a great concern. That obligation (health benefits) is increasing at a greater rate than the revenues, so each year that's less money available to put in the classroom," Holmquist said.

Reason's George Passantino and Adam B. Summers examined the pension crisis and rising cost of retiree benefits here.

Lisa Snell is Director of Education


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