Sacramento County superintendent moves to reverse school district’s solvency plan
SACRAMENTO COUNTY, Calif. —
The financial advisor to the Sacramento County Superintendent of Schools has acted to rescind the Sacramento City Unified School District board’s approval of a solvency plan to address its budget deficit and avoid a state takeover, according to the Sacramento County Board of Education.
During a special meeting Thursday, SCUSD’s school board unanimously approved a $158 million solvency plan that includes a hiring freeze and proposed cuts. 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.
County education officials said the district currently faces a deficit of $221.8 million.
In the same meeting, the board approved a new contract with the Sacramento City Teachers Association, effective through June 2030. The board estimates that the contract will unlock $97 million by using funds from the retiree health benefit fund, Medi-Cal reimbursements, and money allocated for unfilled staff vacancies.
County officials said the decision to rescind the district’s agreement is based on three factors:
The plan would redirect assets from one account to anotherUsing assets from the trust fund will cost more over timeThe agreement would restrict the district’s flexibility in the long-term
“SCUSD cannot solve its fiscal crisis by merely delaying it. The Fiscal Advisor’s action is to protect students, families, and employees; the Board must now adopt immediate, specific, and viable solutions before the district runs out of cash,” the superintendent’s office said in a release.
In response, the teachers’ union said it’s appealing the decision by the superintendent.
“Our union intends to honor this agreement and we urge the district to appeal this decision and do what’s best for students and our community,” union president Nikki Davis-Milevsky said in a statement.
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