SCUSD at high risk of fiscal insolvency, state agency reports

The Sacramento City Unified School District is facing a financial crisis, reporting a projected $51 million deficit by the end of this school year that could grow to $125 million by 2027-2028, risking a state takeover by June without significant cuts.The Fiscal Crisis and Management Assistance Team (FCMAT), an independent state agency that assists educational agencies in financial distress, has warned that the district is at high risk for fiscal insolvency. The agency’s CEO described the situation to the school board as a “crisis of leadership and a crisis of integrity,” citing a lack of budget oversight, overspending, and insufficient financial training.The district is considering significant cuts, including millions in salaries, supplies, and contracts, as well as reducing 58 administrative positions. However, this proposal faced opposition during the board meeting.”I’m hearing the same tired, misguided refrain in response to budget woes. Let’s chop from the top. And the new one: ‘We are going to keep cuts away from schools.’ And to that I say, really?” said Belinda Bridgewater, principal of Isador Cohen Elementary School. Garrett Kirkland, president of United Professional Educators, questioned whether employees in the district are asking themselves if they are better off going into state receivership to avoid “politically motivated decision-making going forward.””Many employees feel the board has been negligent in its core responsibilities,” Garrett said. “We expect better.”FCMAT Michael Fine disagreed with state receivership being the better decision.”Somebody like me will come in and replace all of you and make the decisions that you were entrusted to make,” Fine said. The County Office of Education is assisting the district by appointing a financial advisor to help navigate the crisis. Fine noted that the district’s financial situation is now far worse than it was seven years ago — the first time the agency got involved in 2018.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

SACRAMENTO, Calif. —

The Sacramento City Unified School District is facing a financial crisis, reporting a projected $51 million deficit by the end of this school year that could grow to $125 million by 2027-2028, risking a state takeover by June without significant cuts.

The Fiscal Crisis and Management Assistance Team (FCMAT), an independent state agency that assists educational agencies in financial distress, has warned that the district is at high risk for fiscal insolvency.

The agency’s CEO described the situation to the school board as a “crisis of leadership and a crisis of integrity,” citing a lack of budget oversight, overspending, and insufficient financial training.

The district is considering significant cuts, including millions in salaries, supplies, and contracts, as well as reducing 58 administrative positions. However, this proposal faced opposition during the board meeting.

“I’m hearing the same tired, misguided refrain in response to budget woes. Let’s chop from the top. And the new one: ‘We are going to keep cuts away from schools.’ And to that I say, really?” said Belinda Bridgewater, principal of Isador Cohen Elementary School.

Garrett Kirkland, president of United Professional Educators, questioned whether employees in the district are asking themselves if they are better off going into state receivership to avoid “politically motivated decision-making going forward.”

“Many employees feel the board has been negligent in its core responsibilities,” Garrett said. “We expect better.”

FCMAT Michael Fine disagreed with state receivership being the better decision.

“Somebody like me will come in and replace all of you and make the decisions that you were entrusted to make,” Fine said.

The County Office of Education is assisting the district by appointing a financial advisor to help navigate the crisis.

Fine noted that the district’s financial situation is now far worse than it was seven years ago — the first time the agency got involved in 2018.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel