LA County warns Paramount Unified faces multi‑year deficit as board debates cuts and consultant spending

The Los Angeles County Office of Education told the Paramount Unified School District board on April 22 that the district’s current projections show sustained unrestricted deficits that could erode legally required reserve levels within a few years.

Octavio Castello, executive director of Business Advisory Services at LACOE, and Dave Wilson, who works closely with Paramount, outlined figures from the district’s second interim. The county staff said the district faces roughly $27.7 million in unrestricted deficit spending this year, a projected $16.4 million deficit in 2026–27 and another $25.9 million in 2027–28 if current trends continue. Enrollment has fallen from about 14,300 in 2019–20 to roughly 11,600 in 2024–25; LACOE staff said the district could fall to approximately 10,500 students by 2027–28, further eroding state funding tied to attendance.

“The way in which you’re projecting, you will fall below the minimum required reserves,” Octavio Castello said, noting that districts are required to maintain a minimum reserve (about 3% for a district Paramount’s size) and that LACOE has tools ranging from conditional approvals to more intensive fiscal oversight if a district’s solvency is at risk.

Board members, staff and community speakers tied the financial picture to several district choices. Several public commenters at the meeting—teachers, students and parents—urged the board to avoid cuts that would disproportionately affect classroom services. John Paul Dreer, a local property and business owner, urged a three‑year budgeting approach and recommended a state audit, saying he had seen millions of dollars uncovered in another district after a state review.

Board members pressed district staff for more detail and for alternatives to teacher reductions, including more aggressive local outreach to recover average daily attendance (ADA). One board member said recovering just a small share of absent students could yield roughly $1.15 million a year.

Several trustees also raised concerns about consultant and administrative spending. Vice President/Clerk Martinez asked for an independent audit and said the contrast between millions spent on consultants and the potential reduction of dozens of direct‑service positions demands “immediate and thorough review.”

Superintendent Dr. Joshua L. Lidle and district staff acknowledged the seriousness of the projection and said they are working with LACOE and employee groups to identify savings while protecting classroom services. “Executive cabinet and I continue to have ongoing collaboration with TAP leadership and CSEA leadership to identify what we can work on,” Lidle said.

What happens next: LACOE will review the district’s adopted budget (due July 1) and can approve it with conditions, request a fiscal stabilization plan, or take further action if reserves continue to fall. Board members and community members at the meeting said they expect the district to provide more detailed spending breakdowns and to return with specific savings proposals, including consultant audits and a prioritized list of potential reductions.

Key developments and votes from the meeting: the board received the LACOE presentation, approved routine consent items, and later voted to send several personnel and contracting actions forward as part of a broader effort to reduce costs.