June 14, 2016
Dear Superintendent King and School Board President Zimmer:
I received Superintendent King’s letter dated June 14, 2016, and am currently reviewing
it with my staff. As representatives from the California Department of Education (CDE)
and I have said in phone meetings with you, we stand ready to work through all of these
fiscal issues very carefully. Our staffs are scheduled to meet on June 16, 2016, to
discuss ways in which the Los Angeles Unified School District (LAUSD) can comply with
the Department’s May 27, 2016, decision in the appeal filed by Reyna Frias and to do
so in a way that minimizes any budget disruptions.
Unfortunately, there has been considerable misunderstanding of the decision. I hope
this letter can provide clarity. Respectfully, the CDE decision does not require LAUSD to
identify $1 billion in programmatic cuts.
Furthermore, some media reports were not accurate. It was not the finding of CDE that
LAUSD inappropriately expended $450 million or that it “shortchanged” unduplicated
students. Instead, CDE reviewed the complaint and concluded that LAUSD did not
provide an adequate explanation of how $450 million in special education funds met the
proportional spending requirements for services for unduplicated students in Local
Control and Accountability Plans.
Districts receive extra funds for unduplicated students – foster youth, low income
students, and English learners – and are required to demonstrate how the extra funds
increase or improve services to these students.
It is our understanding that LAUSD may be able to justify counting a significant portion
of the $450 million or it may be able to identify in its LCAP other expenditures that are
principally directed towards unduplicated students.
In doing so, LAUSD would be able to minimize disruption to its budget. Alternatively, it
could redirect spending in its budget toward services that principally benefit
unduplicated students, or it could take some combination of both actions.
In discussions with LAUSD staff, it has become clear that in 2016-17, the maximum
amount of additional funds that LAUSD would have to identify as going towards
unduplicated students or redirect in spending toward unduplicated students is $245
million. But in order to allow LAUSD to make thoughtful adjustments to its LCAP and
budget, CDE will not require LAUSD to make any significant spending adjustments until
the 2017-18 fiscal year.

 June 14, 2016
Page 2
CDE staff looks forward to discussing these issues in more detail with LAUSD and
helping staff implement the decision in a way that is fair and complies with the law and
avoids disruptions to students and faculty.
Sincerely,

Tom Torlakson
TT:ba