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L.A. Teachers Union Flunks Math, Blames Billionaires

28 October 2026 at 15:56
A protestor holding a sign that says 'Fund the school not the police' | Homes.com/Ted Soqui/Sipa USA/Newscom

Californians facing not one but two wealth-tax initiatives on next week's ballot may well be asking themselves how all these tens of billions of forcibly extracted dollars will be spent.

The answer, based on new studies and weary observation: horribly.

Take the Los Angeles Unified School District (LAUSD), the country's second largest. In July, L.A. County Superintendent of Schools Debra Duardo designated the LAUSD as a "lack of going concern," due to its ongoing operating deficits, exacerbated by fresh salary increases for unionized workers. The state's longstanding school Fiscal Crisis and Management Assistance Team (FCAMT) then issued a damning report in September, placing the district at a "high risk" for fiscal insolvency. Why? Because payroll was expanding while enrollment was collapsing.

"From 2019-20 through 2024-25," the report found, "noncharter school enrollment declined from 440,365 to 369,830 students, a decrease of approximately 16.0%. Over the same period, total [full-time equivalent jobs] increased from 60,344 to 64,148, or approximately 6.3%. As a result, the number of students per total FTE declined from 7.3 to 5.8."

This incongruent math is a feature, not a bug, of Californian education spending.

"From 2002 to 2023," Reason Foundation Managing Director of Education Reform Aaron Garth Smith and Managing Director of Government Finance Jordan Campbell wrote in a study this June, "California led the nation in K-12 spending growth." And when exactly did K-12 enrollment peak in the LAUSD? 2002!

Between fiscal years 2013 and 2023, Smith and Campbell found, LAUSD enrollment fell by 34.7%, yet "inflation-adjusted expenditure on employee compensation—including salaries, benefits, and other wages—grew by…27%." In a city, county, and state dominated by public sector unions (the California Teachers Association has already spent more than $65.5 million this election cycle), collective bargainers sit across the table from the politicians they helped elect, leaving only taxpayers and public-school families on the outside looking in.

United Teachers Los Angeles (UTLA), one of the most radical teachers unions in the country, reacted to the FCAMT "high risk" report with an innumerate defiance redolent of President Donald Trump.

"This fake independent analysis disparages the school board for rightfully addressing the needs of working people who face some of the worst housing and childcare costs in the country," UTLA Vice President Julie Van Winkle told the Los Angeles Times. The union's website called the report "a so-called 'analysis'" that used "a rigged scoring system with a predetermined outcome."

The UTLA broke with the statewide California Teachers Association in backing Proposition 40, the retroactive 5 percent tax on billionaires' paper wealth that would send 90 percent of the proceeds toward healthcare spending. ("California's schools, hospitals, and clinics need funding. Billionaires do not," Van Winkle explained.) But while the controversial Prop. 40 is looking wobbly at the polls, amid caterwauls over big money in politics, the much less ballyhooed Prop. 3, which makes permanent some wealth taxes that were sold as temporary in 2012, looks set to sail through without much resistance. Literally.

Spending on Prop. 3, L.A. Times education reporter Howard Blume concluded this week, "adds up to more than $81 million for and about $5,500 against." For those keeping score at home, that's a ratio of more than 14,700 to 1, brought to you primarily by teachers unions, who incidentally are lying about the initiative.

"Strict accountability [will] ensure every dollar gets to classrooms, not Sacramento politicians," vows the Yes on 3 website. Nonsense: The higher income-tax brackets, which begin at $371,479 for individuals and $742,958 for couples filing jointly, just feed into California's general fund, of which 40 percent goes to transitional kindergarten through community college.

Californians who routinely support such tax hikes and spending increases may flatter themselves that they're taking the side of children over rapacious billionaires, as well as the odd hundred-thousandaire. But the results produced by these massive money transfers have stubbornly failed to adhere to the alleged beneficiaries.

In 2024–25, the California Policy Center noted in July, "approximately 54 percent of tested LAUSD students did not meet or exceed the state standard in English language arts, 63 percent did not meet it in mathematics, and 73 percent did not meet it in science." With results deflation has come grade inflation, meaning that Los Angeles public schools are increasingly passing students who don't meet grade-level standards.

Far from acting as a bulwark against heartless spending cuts, California's never-ending won't-you-think-of-the-children tax-and-spend cycles are blunting economic growth and creating hollowed-out monuments to the folly of central planning. Just as the LAUSD was beginning its dizzying enrollment descent, the district launched a $20 billion, eminent domain–abusing school-construction program that was routinely characterized as "the largest public works project in the western United States."

More than a thousand homes, plus such landmarks as the Ambassador Hotel and Hollywood Star Lanes (from The Big Lebowski) were plowed over, only to create an overall building stock that now stands half-empty, incurring massive sunk costs.

As Blume detailed this week in the L.A. Times, "A modern, vacant and vandalized $34-million public school sits next to Los Angeles Unified School District headquarters — a campus paid for with taxpayer-financed bond money, but so burdened with debt and damage that it's not clear that anyone can afford to move in. The compact, aesthetically striking campus is marred by widespread graffiti. Vandals have punched holes in floors, walls and ceilings over the last five years. Recent photos of the inside appear to show puddles and stains from water damage and char marks from fire. The district is paying at least $20,000 a month in security and maintenance, and last year calculated having spent more than $1 million to secure and maintain the building."

Good luck, California!

The post L.A. Teachers Union Flunks Math, Blames Billionaires appeared first on Reason Magazine.

California's Wealth Tax Could Cost the State $39 Billion

26 October 2026 at 21:35

This week, editors Peter Suderman, Nick Gillespie, and Matt Welch are joined by Associate Editor Liz Wolfe to discuss California's proposed 5 percent wealth tax on billionaires, which a Hoover Institution study suggests could ultimately cost the state $39 billion in lost revenue. With wealthy residents already leaving California, the panel examines whether the measure will survive next week's vote, why Gov. Gavin Newsom opposes it, and how public sector unions have helped fuel the state's spending problems.

The panelists then look to France, where mounting unrest and economic stagnation raise questions about the long-term consequences of high taxes, expansive welfare programs, and pension obligations that increasingly burden younger generations. Next, they discuss Venezuelan opposition leader María Corina Machado returning home after 10 months in exile. Then, with the midterm elections next week, the editors examine whether Trump's tariffs, war with Iran, and mounting allegations of corruption will deliver Democrats control of Congress. Finally, a listener asks whether today's democratic socialist movement will ultimately be remembered like the libertarian and Tea Party movements of the early 2010s.

 

0:00—California's wealth tax proposal

13:02—Will France protests influence America?

22:50—Corina Machado returns to Venezuela.

31:19—Listener question on the DSA

44:40—2026 Midterm elections preview

58:34—Weekly cultural recommendations

 

Upcoming Reason Events

Reason Versus - Authoritarianism Is a Right-Wing Problem, November 10

 

Mentioned in the Podcast:

"Will the Wealth Tax Fail?" by Liz Wolfe"France Is a Warning to California's Tax-the-Rich Crowd," by Veronique de Rugy"California's 'Wealth Tax' Could Cost the State $39 Billion," by Eric Boehm"Report: California's Proposed 'Billionaire Tax' Is Based on Bad Research," by J.D. Tuccille"A Wealth Tax Built on Billionaires Who Aren't Really Billionaires," by Veronique de Rugy
"New Book Says Jared Kushner Funneled Money to Middle East Mercenaries. Kushner Denies It." by Matthew Petti"Trump's Tariffs Are Politically Toxic," by Eric Boehm
"The Democrats' Socialist Moment," by Matt Welch
"Family Separation Drama Fjord Is a Haunting Depiction of Unchecked State Power," by Peter Suderman

The post California's Wealth Tax Could Cost the State $39 Billion appeared first on Reason Magazine.

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© Illustration: Fatima Ruiz

Matt Welch appears on the left. Liz Wolfe appears on the right. Behind them, an image of Governor Gavin Newsom appears looking concerned in the center. Bold text across the top of the screen reads "TAX THE RICH?"

France's Welfare State Is Finally Imploding

This week, editors Peter Suderman, Katherine Mangu-Ward, Nick Gillespie, and Matt Welch discuss the riots engulfing France and whether the country's increasingly unsustainable welfare state has made it ungovernable. They examine competing claims that immigration and austerity are fueling the unrest, the political gains being made by the French right, and why even modest pension reforms provoke fierce resistance.

The conversation turns to the United States, where President Donald Trump's tariffs are losing support among blue-collar voters and Republicans are struggling in traditionally conservative areas like Ohio. The panelists then discuss the abrupt departure of White House press secretary Katie Zacharia after just five days on the job. Later, they examine Sen. Elizabeth Warren's (D–Mass.) opposition to a proposed $45 billion merger involving McCormick and Unilever. Finally, a listener asks why libertarians don't follow the Democratic Socialists of America's example by trying to reshape the Republican Party from within.

0:00—France's riots and the imploding welfare state
21:29—Trump's tariffs lose support among blue-collar voters.
29:41—Zacharia's tenure as White House press secretary
35:45—Listener question on libertarian influence strategy
45:52—Warren's corporate merger opposition
57:07—Weekly cultural recommendations

 

Upcoming Reason Events

Reason Versus - Authoritarianism Is a Right-Wing Problem, November 10

 

Mentioned in the Podcast:

"France Burns," by Liz Wolfe
"Protesters in France and Spain Are Angry at Government Failure—and Demanding More Government," by Reem Ibrahim
"French Tantrum," by Liz Wolfe
"Yes, Heavy Regulation Hurts the Economy. Just Look at France." by Veronique de Rugy
"Even Blue-Collar Workers Have Turned Against Trump's Unpopular Tariffs," by Eric Boehm
"Ohio's Democrat Momentum," by Liz Wolfe
"Trump Fired Kimberly Guilfoyle for Influence Peddling That Pales Next to His Presidential Profiteering," by Jacob Sullum
"Why populism leads to decline," by Nick Gillespie
"How Third Parties Die," by Jesse Walker
"How GOP Fiscal Sanity Died, in 7 Easy Steps," by Matt Welch
"Be Prepared for Elizabeth Warren's Reign of Economic Error," by Nick Gillespie
"Elizabeth Warren Wants the Government To Investigate America's 'Sandwich Shop Monopoly,'" by Christian Britschgi
"The Elizabeth Holmes Documentary You Can See Everything Is an Act of Radical Empathy," by Peter Suderman
"Thank Dutch Merchants, Not a Strong State, for Capitalism," by Edward Stringham

 

Today's sponsor:

Cato Innovation Project: Design your own full-time, paid role at Cato. If we fund your idea, you spend two years executing it. Apply here: cato.org/reason

The post France's Welfare State Is Finally Imploding appeared first on Reason Magazine.

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© Illustration: Fatima Ruiz

Katherine Mangu-Ward appears on the left. Nick Gillespie appears on the right. An image of a car that's been set on fire by protesters appears in the center. Bold text across the top of the screen reads "FRANCE RIOTS."
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