Labor and Public Sector Finance

Los Angeles Unified School District warns schools may close next week after three major unions representing roughly 70,000 of its 83,000 employees announced plans to strike starting Tuesday unless new contracts are reached. A LAUSD spokesperson says the district negotiated with United Teachers Los Angeles, the Associated Administrators of Los Angeles and trades unions over spring break and reached a deal only with trades, insisting its offers to the others are "among the most generous in the state" and that it is already in deficit spending. Union leaders argue the district is hoarding money, pointing to more than $5 billion in reserves, while LAUSD counters that its projected June 2026 balance of $3.8 billion includes legally restricted funds and that all unrestricted reserves would be gone within two years at current spending levels. District officials have launched a website to help families find food distribution sites and mental‑health services if schools shut down, and have acknowledged that closures are virtually certain if any two of the three unions walk out. The confrontation, which could disrupt schooling for more than half a million K‑12 students, is drawing broader scrutiny as another test of how large urban districts spend pandemic‑era surpluses and handle wage demands from educators and support staff amid inflation and rising living costs in major U.S. cities.