Spiral

Today, Reason Foundation released a study of Los Angeles Unified School District (LAUSD) finances. We find that the nation’s second-largest school district faces insolvency largely because its steep legacy costs are being spread across a shrinking student population. With state funding dependent on average daily attendance at LAUSD schools, the district’s revenue falls as students leave the district or skip classes. This reduced funding must be stretched ever further to pay a variety of fixed costs, including unfunded pension obligations and retiree health care expenditures.

As more funds go to retirement past due, then fewer discretionary resources at the school.  Schools become inefficient to the student and we get drop outs.   Negative feedback spiral, the loop costs cannot be priced as the end points don't match. Families leave replaced by camptown.

Gavin pulled the same stunt in San Francisco.