Austin Beutner’s Fiery Letter Slams LAUSD’s Carvalho Over ‘Morally Bankrupt’ $77 Million Arts Funds Diversion

$77 Million at Stake: A Willful Law Violation? (Image Credits: Nypost.com)

Los Angeles — Former Los Angeles Unified School District superintendent Austin Beutner delivered a sharp rebuke to current leader Alberto Carvalho, accusing him of deliberately diverting $77 million in state arts education funds meant for hiring new teachers.[1][2]

$77 Million at Stake: A Willful Law Violation?

Beutner claimed Carvalho willfully and knowingly violated state law by using the funds to plug holes in the district’s $19 billion budget rather than expanding arts programs. He described the action as not only illegal but profoundly wrong.

“This is not only a clear violation of the law passed by more than 7 million voters, it’s morally bankrupt because it deprives hundreds of thousands of students in LA schools the benefits they would receive by participating in arts and music at school,” Beutner wrote in the letter sent to the district on Monday.[1] Currently, only one in five LAUSD schools employs an arts teacher, despite the district receiving about $200 per student annually from these funds.[1]

Proposition 28: Voters’ Mandate for Arts Expansion

California voters approved Proposition 28 in 2022, allocating roughly $1 billion statewide each year exclusively for arts and music education in K-12 schools. The measure, which Beutner helped author, required districts to hire additional staff and certify that funds supplement, rather than replace, existing arts spending.[1][3]

LAUSD received $77 million for the 2023-24 school year alone, yet Beutner alleged the district prioritized covering salaries for existing staff over new hires. A 2024 internal memo from Carvalho to the board confirmed this approach: “The District prioritized the use of Prop 28 funds to cover existing staff as well as hire new staff.”[1] Principals reportedly received vague instructions, with little transparency on allocation.[4]

Lawsuit Exposes District Shortcomings

Beutner and a group of parents filed suit against LAUSD and Carvalho last year, demanding proper use of the funds. The ongoing case highlights failures at 37 elementary schools, where arts investments either stalled or declined despite the influx.[4]

In November, Superior Court Judge Rupert Byrdsong signaled skepticism toward the district’s defense, stating to its attorney, “[F]ollowing that money and making sure that it is earmarked carefully, I think you all are missing the mark.”[1] Labor unions, including United Teachers Los Angeles, endorsed the litigation, criticizing the handling as a “shell game” with voters’ money.[3]

FBI Scrutiny Adds Pressure Amid Budget Woes

Beutner’s letter arrived as LAUSD grapples with federal scrutiny. FBI agents raided Carvalho’s home and office last month over alleged fraud tied to an AI tech contract; he remains on paid administrative leave and has not appeared publicly since.[1]

• Declining enrollment squeezes the budget, prompting layoff considerations and school closures.
• Tough negotiations persist with the teachers’ union.
• Acting Superintendent Andrés Chait now leads the nation’s second-largest district.

Beutner urged the board to disclose Prop 28 spending details, writing, “Recent events involving Superintendent Carvalho are a stark reminder about the importance of transparency and accountability.”[1] A district spokesman declined comment on the letter or litigation.

As LAUSD faces these overlapping crises, Beutner’s call for corrective action underscores a fundamental question of trust in public education funding. Will the board prioritize arts for students, or continue defending the status quo? What do you think about this controversy? Tell us in the comments.