Sacramento teachers union says deal could provide $100 million in budget relief for SCUSD
SACRAMENTO, Calif. —
The Sacramento City Teachers Association said it has reached an agreement that could provide the Sacramento City Unified School District with nearly $100 million in budget relief as it works to balance its budget and avoid a state takeover.
According to the teachers union, the agreement would allow the district to use an existing reserve fund to pay for retiree health insurance, freeing up $67 million over three years.
Another $30 million would come from savings on vacant positions, reduced general fund expenses, and additional Medi-Cal revenue.
The deal also extends the union’s contract through June 2030.
A representative for SCUSD said it does not have a statement at this time. The school board plans to discuss the agreement during a special meeting later this week.
The district has been facing down a $170 million deficit. In May, Fitch Ratings downgraded the district’s credit rating to junk status, signaling SCUSD is viewed as a riskier investment.
As KCRA 3 previously reported, if the district decides to request state assistance before the next school year, it must do so before the end of the legislative session in August due to delays between requesting and receiving funds.
Under state receivership, the county superintendent would assume all powers and duties of the district board, and the district superintendent would be dismissed.
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–KCRA 3’s Daniel Macht contributed to this report.