LAUSD's New Chief Takes Over Amid Financial Chaos and Corruption Fallout

Alberto Carvalho's abrupt resignation leaves a gaping hole in the Los Angeles Unified School District, which is now barreling toward a financial disaster. The district faces a nearly $2 billion gap between spending and projected revenue.

Andres Chait, a close ally of Mayor Karen Bass, has been unanimously appointed as the new superintendent. This comes just days after Carvalho's resignation amid an ongoing FBI corruption investigation.

Chait, with over three decades of service to LAUSD, claims it is "the honor of a lifetime" to lead the district. However, he steps into a role fraught with challenges, including looming layoffs and declining enrollment.

The district's financial woes are compounded by rising labor costs, increasing healthcare expenses, inflation, and the expiration of federal COVID-relief funds. Enrollment has plummeted to about 390,000 students, roughly half of what it was in the early 2000s.

LAUSD approved a massive $20.6 billion spending plan this week, despite only projecting $18.6 billion in revenue. Officials plan to bridge this shortfall by drawing down reserves while preparing for hundreds of layoffs.

Chait played a pivotal role in labor negotiations that narrowly avoided a districtwide strike. Critics argue that the agreements reached added financial obligations at a time when the district's finances were already under severe strain.

Taxpayers are now footing the bill for two superintendents during the FBI investigation that engulfed Carvalho. While Carvalho remained on administrative leave, he continued to collect his $440,000 annual salary, along with an additional $50,000 yearly contribution to a retirement annuity.

Chait's compensation as acting superintendent was $395,867 annually, plus a $250 monthly expense allowance and access to a district car and driver. Just 20 months prior, he earned $278,205 as chief of school operations.

The school board has yet to disclose details of Chait's permanent contract, including potential raises or additional benefits. Meanwhile, Carvalho's future remains uncertain as district officials have not confirmed whether he will receive a severance package following his resignation.

Chait first took control of the district on February 27, just two days after FBI agents raided Carvalho's home and office. The investigation reportedly includes scrutiny of Carvalho's dealings with a company hired to develop an artificial intelligence chatbot for the district.

Carvalho has not been charged with any crime and maintains his innocence.