State lawmaker seek audit of LAUSD over alleged misuse of arts funding

A California lawmaker’s call for a state investigation into Los Angeles Unified School District’s use of Proposition 28 arts education funds is raising the stakes in an ongoing legal battle that could cost the district more than $100 million if it’s found to have misused the money.

Proposition 28, approved by California voters in 2022, provides dedicated funding to expand arts and music education by hiring new teachers and creating additional programs—especially at schools serving low-income students of color.

Assemblymember Isaac Bryan, D-Los Angeles, recently asked the Joint Legislative Audit Committee to authorize an audit of the state’s largest school district.

The request follows a lawsuit filed by former LAUSD Superintendent Austin Beutner and student plaintiffs that accuses the district and current LAUSD Superintendent Alberto Carvalho of improperly spending millions of dollars intended to expand arts and music programs.

In a phone interview on Thursday, April 3, Bryan said he was an early supporter of Proposition 28 and was inspired by the parents, teachers, educators and artists who fought to secure permanent funding for arts education. He said the measure was clear in its intent to expand course offerings, hire more instructors and prioritize schools with the greatest needs.

“ I think this particular line of funding is for a specific purpose,” Bryan said. “And if we don’t get it right from the beginning, we set our students up in a challenging way for the future.”

Bryan has asked the Joint Legislative Audit Committee, or JLAC, to authorize an audit of LAUSD’s use of Proposition 28 funds. JLAC, a bipartisan body of state legislators, must first vote to approve the request before the California state auditor can formally launch an investigation.

If an audit is approved, the state auditor would have the authority to review LAUSD records, interview staff and issue a public record. These findings could potentially expose the school district to financial and reputational consequences if wrongdoing is confirmed, adding further pressure as it faces a lawsuit that could cost LAUSD more than $100 million.

Bryan submitted the audit request to JLAC on March 20, but no hearing date has been set.

In the meantime, LAUSD, which has said it has followed state guidelines in its use of Prop. 28 funding, stated that it is seeking a resolution that protects arts education and minimizes legal costs.

“We are committed to expediting a resolution to this matter that brings clarity, continues to protect and expand arts education for our students, and avoids legal costs to our publicly funded institution,” a district spokesperson said in a statement Friday, April 4.

Former LAUSD Superintendent Beutner, who authored the statewide ballot measure, said he welcomed Bryan’s involvement and expressed support for an independent state audit of the district.

“I welcome Assemblymember Bryan’s involvement, his commitment to kids and the arts,” Beutner said when reached by phone Thursday. “We hope that JLAC does take a careful look at LA Unified. The facts are the facts. We know that they have used the money to pay for existing programs, and the law specifically says you can’t.”

He added that the lawsuit and the audit would be parallel efforts.

“So in a certain sense, we know what the auditor, or an audit by JLAC will find, but they have other things they can do to enforce laws that are stronger than the school district imposes on itself,” Beutner said.

Vicky Martinez, a parent of three LAUSD students who are plaintiffs in the lawsuit, said Friday that she’s grateful the assemblymember is pushing for an audit.

“ I’m really excited and happy to know that we have the support of others that are asking the state to do a thorough investigation,” she said. “I feel that if LAUSD is doing what is right, and they’re using the money the way it should be, then there’s no problem in showing us the books.”

Martinez added that if the district is not spending Prop. 28 funds as intended by hiring new arts teachers, and buying art supplies and materials, it needs to be held accountable.

“They need to do right by the students and they need to follow the rule of the law and they need to abide by it,” Martinez added.

Beutner authored Proposition 28 with backing from major Hollywood figures. Voters overwhelmingly approved the initiative in 2022. Proposition 28 funding comes from the state’s General Fund, which is made up of taxpayer dollars and supports a range of public services, including education.

In February, the former LAUSD superintendent, along with eight student plaintiffs, filed a lawsuit against the district, alleging that LAUSD misused $76.7 million in Proposition 28 funds by paying existing staff for existing art programs rather than hiring additional arts teachers and creating new art classes, as required by law.

Citing the allegations raised in the lawsuit and broader concerns from the community, Assemblymember Bryan has asked the state to examine how LAUSD and other districts have used Proposition 28 funds. The audit request seeks to determine how many additional arts teachers and aides were hired, how much arts instruction was expanded, and what guidance the California Department of Education provided to ensure compliance with the law.

The audit would also review whether districts properly reported their use of funds and whether the civil rights of Black and Latino students were being violated. In addition to LAUSD, the proposed audit would include four other large districts, including Long Beach Unified, and five small districts across the state to provide a broader statewide assessment. Bryan said a careful look at a sample of districts would benefit students, families, and taxpayers across California.

If the lawsuit moves forward and the audit finds that LAUSD violated the law, the district could be required to return more than $100 million to the state to be reallocated to other districts that are properly using the funds, Beutner said.

In addition to returning money to the state, LAUSD could face fines for providing false information to the public and the California Department of Education, along with other possible remedies a court might prescribe for violating the civil rights of Black and Latino students, he added.

“It’s a critical moment,” Beutner said.