Commentary: Inglewood’s School District Return to Local Control Offers Lessons for California
Tanu T. Henry | California Black Media
Nearly 14 years after California intervened in the Inglewood Unified School District’s (IUSD) fiscal crisis, the district is closer than ever to regaining full local control. That achievement deserves recognition. It also gives California an opportunity to evaluate what its longest-running school receivership can teach about helping school districts recover from fiscal crisis.
In July, the Los Angeles County Office of Education (LACOE) announced that Inglewood Unified had met all 153 standards established by the Fiscal Crisis and Management Assistance Team (FCMAT). If the district maintains that progress through one more annual review, authority will return to the locally elected school board in 2027, although a state trustee will retain veto authority over certain board actions until the emergency state loan is repaid.
Los Angeles County Superintendent of Schools Debra Duardo said the achievement is “about hope,” “resilience” and “believing in what’s possible,” while reminding the community that one year of monitoring remains.
Board President Carliss McGhee, PhD, who has served throughout the receivership, reflected on the district’s progress.
“I’ve been on this board for the last 14 years. It’s been 14 years, nine state and county administrators. It’s been a journey, but I want to thank the families, I want to thank our students, and I really want to thank our team at IUSD,” McGhee said. She also thanked “the community that held strong” and “continued to do the work.”
For Inglewood’s Black community, the announcement marks the culmination of years of advocacy. Organizations, including the Education Equity Coalition and the Inglewood Area Ministers Association, fought to restore local control after state-appointed administrators eliminated programs such as Early Childhood Development and Adult Education.
The district entered receivership in 2012 after a cash-flow crisis developed during the Great Recession. Staffing levels had been miscalculated before the economic downturn, and as revenues declined the district drew down its reserves to continue operating. An audit also identified financial reporting problems, including overstated attendance, understated salary costs and deficit spending. Those factors prompted the Legislature to authorize emergency financing through Senate Bill (SB) 533 authored by former State Senator Rod Wright (D – Inglewood). Although the state authorized a loan up to $55 million, Inglewood ultimately borrowed $29 million. In 2018, Assembly Bill (AB)1840 transferred day-to-day oversight from the California Department of Education to LACOE while local governance remained under county supervision.
County Administrator Dr. James Morris said the district’s progress extends beyond finances. “It isn’t just a finance story,” Morris said. “It’s a story that’s measured by what happens in classrooms. This is an achievement that was built by people, not just spreadsheets.”
Those accomplishments are significant. They also raise an important policy issue.
Although Inglewood met every FCMAT standard, the agency also found that previously approved budget reductions had not been fully implemented, contributing to continued deficit spending and unnecessary use of reserves. Helping a district navigate a fiscal crisis is only the first step. The larger test is whether it returns to local control with a financial foundation strong enough to avoid repeating the same patterns that led to state intervention.
That challenge extends beyond Inglewood.
The Los Angeles Unified School District recently received a “Lack of Going Concern” notice from LACOE warning it could face cash-flow problems by late 2027. Sacramento City Unified School District (SCUSD) projected deficit has grown sharply. Oakland Unified School District (OUSD) and San Francisco Unified School District (SFUSD)continue addressing structural budget challenges, while the state’s May 2026 interim financial reports identified 33 districts with negative or qualified financial certifications.
Many of those districts educate large numbers of Black students. Their financial condition affects classroom instruction, student services, school facilities and educational opportunities for communities that have historically faced unequal educational outcomes.
California has developed a process for helping districts through fiscal crisis. Inglewood demonstrates that state and county oversight can restore financial controls, improve governance and put a district on the path back to local control. What remains less certain is whether the current intervention model consistently leaves districts with the long-term financial stability needed to avoid repeating the same problems.
That challenge becomes even more important as California implements a new education governance structure that gives the Education Commissioner responsibility for many of the California Department of Education’s administrative and fiscal functions while county offices continue their oversight responsibilities under AB 1840.
Inglewood’s return to local control marks an important achievement. It reflects the commitment of educators, employees, students, parents, community leaders and elected board members who refused to give up on their schools.
California’s responsibility does not end when local control returns. Before another district requires state intervention, lawmakers, county education leaders and the new Education Commissioner should examine what Inglewood’s experience teaches about building not only fiscal stability, but lasting financial sustainability.
