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Former LAUSD Superintendent Austin Beutner is blasting current leader Alberto Carvalho in a scathing letter over the alleged misuse of tens of millions of dollars in arts funding.
Carvalho — who was targeted in a series of FBI raids last month for alleged fraud and corruption — is responsible for diverting public funds meant to pay for arts teachers, according to Beutner.
Carvalho “willfully and knowingly violat[ed] the law,” by misusing $77 million in state arts education funding to backfill gaps in the district’s $19 billion budget, a letter sent to the district from Beutner on Monday claims.
“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,” the letter, obtained by The California Post, states.
Beutner also outlines a secret, internal document he allegedly obtained that shows Carvalho admitted to the LAUSD board in 2024 that he was not using the money for arts teachers as the law requires.
Carvalho in a memo to the board states, “The District prioritized the use of Prop 28 funds to cover existing staff as well as hire new staff,” in response to questions to the board over whether the funds were being used properly.
The money meant for arts teachers comes from a 2022 law passed by voters called Proposition 28, which sends about $1 billion in state funding each year to all the California school districts with a mandate that the money be used to be pay for arts teachers.
Only about one in five LAUSD schools has an art teacher, and the funding is meant to ensure that every school has one. LAUSD’s share of the money works out to about $77 million per year, or about $200 per student.
Beutner served as LAUSD superintendent before Carvalho took over. Beutner wrote the Proposition 28 legislation that gives schools the money. He claims Carvalho didn’t use the money to pay for arts teachers as the law mandates. He wants the district to use the millions to pay for arts teachers as the law says.
Carvalho hasn’t been seen since the FBI raided his home and office late last month over his deals with an AI tech firm contracted by the district. He has been placed on paid administrative leave by the district’s board. He did not respond to a request for comment on Beutner’s claims.
Beutner’s letter to the LAUSD also makes note of the FBI investigation.
“Recent events involving Superintendent Carvalho are a stark reminder about the importance of
transparency and accountability in everything a school district does. While much is yet to be known about the reasons for Federal law enforcement activity at the Superintendent’s home and office, that is not the case with Prop 28,” he writes.
“The Board of LAUSD has all of the facts. It’s time to show the school community how Prop 28 funds have been used at schools.”
Passed by a majority of voters in 2022, Proposition 28 was intended to provide yearly funding for art and music education in all K-12 public schools in California. The law states that districts including LASUD must “certify that all funds will be used to provide arts education programs.”
But Beutner claims that’s not what LAUSD is doing.
Together with a group of parents, Buetner last year sued LAUSD in an attempt to force it to use the money from Proposition 28 for arts teachers, rather than general payroll as the suit alleges.
The lawsuit is still in litigation, but the judge deciding the case has said the district will “lose” its argument that it is using the money legally.
“[F]ollowing that money and making sure that it is earmarked carefully, I think you all are missing the mark,” Judge Rupert Byrdsong in November told an attorney representing the district, according to a transcript of a court hearing obtained by The Post.
Representatives for school board president Scott Schmerelson and the school board did not respond to requests for comment.
Enrollment is falling rapidly for LAUSD as fewer Los Angeles residents have children and families leave the city. The declining enrollment is causing budget shortfalls that have forced the district to consider layoffs and school closures.
The district is also navigating difficult contract negotiations with the city’s powerful teachers union.
A spokesman for the district declined to comment on Beutner’s letter and said Los Angeles Unified does not comment on pending or ongoing litigation.
With Carvalho on leave and acting superintendent Andrés Chait running the show, the nation’s second largest-district is under a spotlight, Beutner’s letter says.
“It’s a good time to show all who are watching that you know how to do the right thing,” the letter states.
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