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Allegations of Misuse of Arts Funding Rock LAUSD Leadership

3/10/2026, 4:37:01 AM

Allegations Against Superintendent Alberto Carvalho

Former Los Angeles Unified School District (LAUSD) Superintendent Austin Beutner has publicly criticized current Superintendent Alberto Carvalho in a letter alleging the misuse of $77 million in state arts education funding. Beutner claims that Carvalho has diverted these funds, originally designated for hiring arts teachers, to cover gaps in the district's $19 billion budget. This alleged action violates Proposition 28, a law passed by California voters in 2022, which mandates that funding be exclusively used for arts education programs.

Beutner's letter asserts that Carvalho “willfully and knowingly violated the law,” depriving students of essential arts education. He emphasizes that only about one in five LAUSD schools currently has an art teacher, despite the funding's intent to ensure every school has access to arts education.

Background on Proposition 28 and Legal Actions

Proposition 28 was designed to allocate approximately $1 billion annually across California school districts for arts education. Beutner, who authored the legislation, has taken legal action against LAUSD, arguing that the district is not complying with the law. A lawsuit filed last year, which is still in litigation, aims to compel the district to use the Proposition 28 funds as intended. A judge has indicated that the district's defense may not hold up in court.

Current Situation and Investigations

Carvalho has been placed on paid administrative leave following FBI raids on his home and office, which are part of an investigation into his dealings with an AI technology firm contracted by the district. The FBI's involvement has raised concerns about transparency and accountability within LAUSD. Beutner's letter highlights the need for the district to clarify how Proposition 28 funds have been utilized, especially in light of the ongoing federal investigation.

Criticism and Opposition

Critics of Carvalho, including Beutner, argue that the alleged misuse of funds reflects a broader issue of mismanagement within LAUSD. Beutner's letter calls for immediate action to rectify the situation, stating, “It’s time to show the school community how Prop 28 funds have been used at schools.” Meanwhile, Carvalho has not publicly responded to these allegations or requests for comment.

Implications for LAUSD

The controversy comes at a challenging time for LAUSD, which is facing declining enrollment and budget shortfalls. These financial pressures have led to discussions about potential layoffs and school closures. As the district navigates these issues, the leadership under acting Superintendent Andrés Chait is under scrutiny, with Beutner urging the administration to demonstrate accountability and integrity.

Verbatim Quotes

  • “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,” — Austin Beutner, Former LAUSD Superintendent
  • “Recent events involving Superintendent Carvalho are a stark reminder about the importance of transparency and accountability in everything a school district does.” — Austin Beutner, Former LAUSD Superintendent

The unfolding situation at LAUSD highlights significant challenges in educational funding and governance, with potential ramifications for the district's future operations and student services.