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FAQ

Budget Status: Frequently Asked Questions 

Lynwood Unified School District is dedicated to maintaining a strong relationship with its community members and being fully transparent in our decision-making to ensure there is trust and confidence in the District and its long-term financial health for the benefit of all students.

We value providing accurate information on the District’s budget and other financial matters and have created this document to help our community members understand our current situation. (Access the PDF here.)
A General Fund is a district's daily regular operation fund. It consists of two types of funds:
 
RESTRICTED: Funding must be used for specific purposes such as after-school programming, tutoring, summer school, the arts and special education. These revenues have unique restrictions, spending windows and required reporting.
 
UNRESTRICTED: Funding is used for the services and the general operation of a school district, including staff salaries and benefits, books and supplies, student services, utilities, student athletic uniforms and much more.
 
Within the Unrestricted category, we also have SUPPLEMENTAL AND CONCENTRATION GRANTS: These funds must be used to provide additional support services to special populations – English learners, low-income students, foster youth and students experiencing homelessness.
When enrollment goes down and attendance is low, school districts receive less money from California, which bases funding on the Average Daily Attendance (ADA) of students. As of the January ADA report, the 2022-23 ADA was at 10,710, despite student enrollment being 11,926. This puts the 2022-23 ADA at 89.8% – reflecting a trend of decreased student attendance – thus, less funding – taking place across the state.
 
Each drop of one number in ADA results in a loss of approximately $16,000.
 
ADA is projected at 90% for 2022-23 and the two future years. 
Ending fund balances are what remain when revenues are not fully spent, reflecting efforts taken by the District to manage its finances in a responsible manner, with an eye on future needs. Districts have these funds as a safety net to cover revenue shortfalls and cash deferrals from the State during difficult financial times. 
 
During the 2021-22 school year, about one-third of funds promised to schools were held because of statewide financial instability. Districts were still able to pay employees and keep open because they used their reserves. These funds were ultimately released after some delay. Most statewide agencies suggest that school districts maintain a 10% reserve. Because of our size, LUSD is mandated to maintain at least a 3% reserve. 
 
The fund balance of the most current budget reflects $32.8 million in Unrestricted and Restricted funds. 
 
Ending fund balances cannot pay for ongoing salary increases.
This year, the Los Angeles County Office of Education (LACOE) mandated the District to develop and approve a Fiscal Stabilization Plan. This is required of districts when the County Office has concerns about overspending. In the most recent budget, LUSD is spending $10.9 million more than we are receiving. As a result, we had to develop a plan that demonstrates how we will reduce overspending.
If we do not reduce spending and continue to spend more funds than we receive, the District could end up in County Receivership, meaning we would lose local control and LACOE would hold all decision-making power.
 
This is what happened in Inglewood and why their local community no longer has control over their schools.
Simply put, a consultant – listed under the “Services and Other Operating Expenses” category of our budget – is anyone with whom we do business to provide direct services to students and staff and to support necessary operations Districtwide. This can range from services like after-school and enrichment programs and college readiness workshops, to paying utility bills and the ongoing maintenance of our athletic fields.
 
Other examples of our ongoing operational expenses across the District include:
 
  • Electricity Services = $2.3 million
  • Insurance = $1.4 million
  • Copy Machine Lease and Repair = $1 million
  • Phone Services = $600,000
  • Trash and Waste Services = $400,000
  • Water Services = $400,000
  • Internet Services = $200,000
  • Gas = $140,000
We are projecting to spend $21 million from Unrestricted funds to cover the costs of many services and ongoing expenses like vehicle leases and electricity bills in the next fiscal year. Of this, approximately $11 million is funded through the Supplemental and Concentration Grant and must be used for specialized services.
 
It’s important to note that while there has been an increase in the “Services and Other Operating Expenses” category of the budget, the greatest increase has been in the Restricted category. The majority of remaining funds in the Unrestricted category must be allocated to support special populations. 
 
Funds from both these categories cannot be spent on anything other than providing services to students and cannot, for instance, be used to pay staff salaries.
 
To continue the trajectory of long-term balanced fiscal viability, the District must prioritize and strategically allocate its available funds toward costs that will have the greatest positive impact on student achievement. 
We all agree that LUSD staff and students deserve clean, safe and functional facilities. The ongoing storms as well as staffing challenges have intensified existing issues. We are continuing to make our facilities a top priority and are currently developing new systems to prioritize work and follow-up to ensure repairs are addressed and completed.
 
The Board of Education and District contracting partners have also been holding periodic facilities meetings to discuss priority projects and address the needs of facility updates and improvements across campuses.
Approximately 74% of Lynwood Unified’s Unrestricted funds go toward salaries and benefits.
 
Interim Budget
 

The breakdown below shows the use of all Unrestricted funds in our budget. Of note, the “Services and Other Outgo” line is being dramatically reduced across three years as existing contracts are adjusted.

Unrestricted chart

Lynwood Unified compensates teachers based on their level of experience and the amount of education they have, with salaries ranging from $55,468 to $105,443, or more depending on whether they work summer school or extra assignments. 
 
The average annual salary and employee benefit of a teacher in Lynwood Unified is $118,200 (average salary is $90,000 and average employee benefit is $28,200).

 

BA, No Exp Provisional

BA, No Exp  Credential

BA +30 with No Exp

BA +30 with 5 Years Exp

BA +60 with MA 9 Years

 

Max with MA 20 years
Lynwood

$55,468

$55,468

$56,532

$67,766

$90,537


$105,443
Median

$52,581

$55,098

$56,566

$66,097

$86,571

 $104, 429
Ranking in Los Angeles County

14/44

22/46

20/38

14/38

6/32

 16/47

 Source: Los Angeles County Office of Education, as of June 30, 2022.

In Lynwood Unified, there are three labor groups: Lynwood Teachers Association (LTA), Service Employees International Union (SEIU) and California School Employees Association (CSEA). The District and bargaining units enter into negotiations each year to discuss and reach an agreement on several topics, including salary and benefits. 
 
While no such “Me-Too” clause exists in any contract, historically, the District and the Board of Education have provided the same salary percentage increase to every association after negotiations. The District budgets a salary increase for all three associations. 
Each association can choose to use its entire increase on salary or allocate some of it toward health benefits. While some associations practice allocating more funds to a specific health plan to reduce out-of-pocket costs, others elect to use all compensation increases on salary. LTA has chosen the latter. 
 
For instance, during the 2017-18 school year, LTA was allocated $8,171 per employee to put in a Health Benefits pool. The LTA committee determines how to distribute the pool allocation to the different health plans, which determines the out-of-pocket cost to its members. LTA also proposed a limit on single, two-party and family rates regardless of health plan. That limit remains in effect today.
Teachers work under a contract between LTA and the District, which outlines various elements of working in our schools, including salary, daily schedule, class size and benefits. 
 
The past practice has been that a new contract is negotiated the year after its term has expired.
 
We have actively been in negotiations with LTA since November 2022 and are working diligently to come to a resolution and establish a new contract.
On April 3, 2023, LTA members plan to engage in "Work-to-Rule," meaning that teachers will no longer engage in any work-related activities outside their contracted workday and will forego performing additional duties for which they receive extra compensation, including after-school clubs, athletics, tutoring and credit recovery classes.
 
We are meeting in good faith and are hopeful to come to an agreement and finalize a contract to avoid further impacts on our students and families who rely on our schools, programs and support services.