Sacramento school board approves solvency plan and teacher contract to address budget deficit
The Sacramento City Unified School District board unanimously approved a $158 million solvency plan and a new teacher contract to tackle a projected $135 million budget deficit and avoid a state takeover by 2027
SACRAMENTO, Calif. —
The Sacramento City Unified School District board unanimously approved a $158 million solvency plan and a new contract with the teachers’ union during a special meeting on Thursday to address a projected $135 million budget deficit and prevent a state takeover by June 2027.
The solvency plan includes a hiring freeze and proposed cuts, which the board says are necessary to stabilize the district’s finances.
“We’re exceeding that, and we’re planning for possible shortfalls, but $158 million is a lot higher than $135 million,” Trustee Jasjit Singh of Trustee Area 2 said. “That is our way of cushioning beyond 2026-2027.”
The plan incorporates a one-time $31 million state block grant, $48 million in cash relief from the post-employment benefits fund used by retirees, and $78 million from reductions and savings.
“These are our assistant superintendents, these are top folks at our district who are creating these plans, we’re here to support their ideas,” Singh said. “If they can stand behind those numbers, then we can as well.”
Some of the reductions include eliminating district-issued cell phones to save $300,000 and canceling the 6th-grade science trip, which would save $850,000. Singh addressed concerns about the science trip, saying, “I would hope the 6th-grade field trip would not be the reason someone goes to another school district. I think what makes Sac City great is we have a plethora of dual-enrollment. We have a diverse district.”
The solvency plan will be revised over the next 45 days.
In the same meeting, the board approved a new contract with the Sacramento City Teachers Association, effective through June 2030. The board estimates the contract will save over $97 million by using funds from the retiree health benefit fund, Medi-Cal reimbursements, and money allocated for unfilled staff vacancies.
However, the contract’s “Me too” clause, which grants the teachers’ union a salary increase if the district raises pay for any other labor group, drew criticism during public comments.
“Does that really honestly seem fair?” said Steve Bruno during public comment. Another speaker said, “You told that they couldn’t have raises this year because you’re out of money. But now you told them if they get a raise, the SCTA gets those raises as well.”
Despite concerns that the contract could hinder future hiring, the board emphasized that preventing a state takeover remains their top priority.
“I would ask parents to continue realizing that our cuts are far away from the classroom,” Singh said.
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