The 10.4 percent salary increases LA Unified has agreed to in its deal with United Teachers Los Angeles will cost the district $607 million over three years, according to an analysis Superintendent Ramon Cortines circulated to board members today.
Later, the board voted unanimously, 7-0, to approve the deal.
The final salary figure for the teachers includes $254 million above an amount the district had earlier set aside for the teachers, $353 million, and it does not include an additional $31.6 million that the district will need to pay to other labor union partners who have so called “me-too” clauses. They obligate the district to keep union pay scales on par with each other.
Those expenditures, plus the costly health benefits package approved by the board last week, “will result in two of the district’s out-years having deficit ending balances,” Cortines wrote in his memo. By the end of the 2015-16 the district expects to be $140 million short and about $419 million in the red in 2016-17 for a total deficit of $559 million.
However, Cortines said he expected Gov. Jerry Brown‘s revised budget, due next month, combined with “ending balances” for the current school year would “meet this deficit.”
“The first priority for any new undesignated funds are first to cover the terms of the health and welfare multiyear contract and then to cover the salary agreements and deficits created in the out-years by both,” he wrote. “If the May revise includes one-time funds, the out-years will likely remain in a deficit status that we will have to address accordingly.”