Sacramento City Unified School District Superintendent Lisa Allen will resign from her position, as the district faces a financial crisis that could lead to a state takeover.KCRA 3 obtained a recording of a portion of a video conference call from a district employee on Thursday when Allen called for a “new leader.” “It’s time for the district to have a new leader to lead us through this challenging time,” Allen said. “And we will get through these budget woes.” Allen said she had planned to serve for three more years but upon reflection realized that she was “not the face and future of the district.” KCRA 3 has reached out to the district for comment. According to a December report, SCUSD is facing a $51.6 million deficit. An updated figure is expected to be shared at a board meeting later Thursday when the district’s Interim Chief Business and Operations Officer, Lisa Grant-Dawson, will present an update to its Fiscal Solvency Plan.In a letter sent to district families Monday afternoon, Sacramento City Board of Education President Tara Jeane said there had been “a problematic lack of clarity on the scope of our deficit” and that action to correct the deficit had stalled in recent months.“If we run out of cash and we can’t pay our bills, we then have to get a loan from the state and that is officially state receivership,” she said. District and county leaders stressed Tuesday that all efforts right now are focused on circumventing that option. A state receivership situation would include an appointed trustee being brought in to run the district and serve as the board.Any decision about layoffs needs to be made by March 15, Jeane said.Allen was first named acting superintendent in July 2023 after Jorge Aguilar stepped down, following budget battles with the teacher’s union and board. She became interim superintendent that July, and then superintendent in April 2024. Allen has served in various district roles for 28 years, according to an online bio.The Sacramento County Office of Education is assisting the Sacramento City Unified School District with its attempt to avoid what’s called “fiscal insolvency” by providing financial experts to help guide solutions.”They’re facing, potentially, a shortfall big enough to cause them to go bankrupt. And if they go bankrupt, if they go insolvent, they’re required to get a state loan, which comes with interest,” said Dave Gordon, Superintendent of the Sacramento County Office of Education. “We are trying to give all the help we can to make sure they don’t have to become insolvent.”Gordon said, however, if the district is found to be insolvent, education will continue for district students. He did expect the district to identify costs that can be cut and to consider laying off employees.”I think more information will be forthcoming as we run the numbers and get more confident of how much needs to be cut and whether it’s there to be cut,” he said.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. —

Sacramento City Unified School District Superintendent Lisa Allen will resign from her position, as the district faces a financial crisis that could lead to a state takeover.

KCRA 3 obtained a recording of a portion of a video conference call from a district employee on Thursday when Allen called for a “new leader.”

“It’s time for the district to have a new leader to lead us through this challenging time,” Allen said. “And we will get through these budget woes.”

Allen said she had planned to serve for three more years but upon reflection realized that she was “not the face and future of the district.”

KCRA 3 has reached out to the district for comment.

According to a December report, SCUSD is facing a $51.6 million deficit. An updated figure is expected to be shared at a board meeting later Thursday when the district’s Interim Chief Business and Operations Officer, Lisa Grant-Dawson, will present an update to its Fiscal Solvency Plan.

In a letter sent to district families Monday afternoon, Sacramento City Board of Education President Tara Jeane said there had been “a problematic lack of clarity on the scope of our deficit” and that action to correct the deficit had stalled in recent months.

“If we run out of cash and we can’t pay our bills, we then have to get a loan from the state and that is officially state receivership,” she said.

District and county leaders stressed Tuesday that all efforts right now are focused on circumventing that option. A state receivership situation would include an appointed trustee being brought in to run the district and serve as the board.

Any decision about layoffs needs to be made by March 15, Jeane said.

Allen was first named acting superintendent in July 2023 after Jorge Aguilar stepped down, following budget battles with the teacher’s union and board. She became interim superintendent that July, and then superintendent in April 2024. Allen has served in various district roles for 28 years, according to an online bio.

The Sacramento County Office of Education is assisting the Sacramento City Unified School District with its attempt to avoid what’s called “fiscal insolvency” by providing financial experts to help guide solutions.

“They’re facing, potentially, a shortfall big enough to cause them to go bankrupt. And if they go bankrupt, if they go insolvent, they’re required to get a state loan, which comes with interest,” said Dave Gordon, Superintendent of the Sacramento County Office of Education. “We are trying to give all the help we can to make sure they don’t have to become insolvent.”

Gordon said, however, if the district is found to be insolvent, education will continue for district students. He did expect the district to identify costs that can be cut and to consider laying off employees.

“I think more information will be forthcoming as we run the numbers and get more confident of how much needs to be cut and whether it’s there to be cut,” he said.

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