California superintendent denies Sacramento City Unified’s appeal after rejected solvency plan
The state of California has denied an appeal from the Sacramento City Unified School District after the county rejected the school district’s solvency plan.
Sacramento City Unified is struggling with an estimated deficit of $221 million and is trying to avoid a state takeover. To avoid that outcome, the school district agreed on a $158 million plan and a new contract with the Sacramento City Teachers Association.
But the Sacramento County Office of Education rejected the school district’s plan, citing the following reasons:
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
In response to the county’s rejection, Sac City Unified on Wednesday filed for an appeal to California State Superintendent Tony Thurmond, claiming that both the county and the fiscal advisor it appointed “have been ineffective in assisting the District in resolving its current fiscal challenges.”
On Tuesday, the school district confirmed the state denied the appeal.
If the district can’t get its deficit addressed, the state will take over by June of 2027.
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