Since 2022, LAUSD committed $6.7 billion to private contracts. The public deserves to know where it went.
LAUSD is not a broke school district. It is the second-largest school district in the country with an $18 billion annual budget and $5 billion in reserves. When the district says it cannot afford to pay teachers or fund classrooms, that is a choice — not a fact.
86% of new digital instruction contracts went to private equity or venture capital-backed companies. Nearly 70% of those vendors were paid more than their original contract amounts.
This is not mismanagement. It is a procurement culture that consistently chose vendors over students.
In 2018, a technical project manager inside LAUSD’s IT department began steering contracts to a Texas company called Innive. Over four years, she directed $22 million in district contracts to the firm. In exchange, the company’s owner allegedly funneled $3 million back to her through intermediaries.
Investigators found text messages. In one, the vendor asked what opportunities in LAUSD they could exploit. She replied that she was on the selection committee.
In March 2026, the Los Angeles County District Attorney charged both with felony money laundering. The DA called it the largest money laundering scheme in LAUSD history.
The scheme ran for four years. No one caught it until an LAUSD employee heard about it at a conference.
What are the other opportunities in LAUSD that we can exploit?