LA public sector now bankrupt

LA Times The Los Angeles Unified School District is facing a looming, long-term deficit that could force the system into bankruptcy, a panel of experts has concluded in a new report obtained by The Times.

The group, which met in private over the last several months, concluded that L.A. Unified will face a budget deficit of $333 million in the 2017-18 school year, an additional $450 million the following year and $600 million more the year after that.

This year’s general fund totals about $7.1 billion.

Supt. Ramon C. Cortinesconvened the panel in response to critics who said the district could not afford its recent contract agreements with employee unions. These critics included Chief Financial Officer Megan Reilly, who helped to oversee the work of the fiscal committee.