Parts of Sac City school district deal move forward despite county objections
Special Projects/Investigations Manager
SACRAMENTO, Calif. —
Parts of a deal between the Sacramento City Unified School District and the teachers’ union are moving forward despite objections from the county.
Late last month, the Sacramento City Teachers Association (SCTA) announced it had reached a deal with the district to unlock nearly $98 million in funds, aiming to address the district’s financial crisis and avoid a state takeover.
Part of the deal included using $67 million from a special reserve fund over three years, which is typically allocated for retiree health benefits.
On July 31, the Sacramento County Office of Education (SCOE) announced it had rescinded the district’s agreement.
Now we’ve learned that earlier that same day, the District had already submitted a disbursement request to CalPERS for $20.6 million.
In an email to KCRA 3 Investigates, SCUSD spokesperson Al Goldberg said in part, “The Board approved the MOU with Sacramento City Teachers Association (SCTA) on July 30. The next morning, prior to receiving the fiscal advisor’s rescission letter later that late afternoon, district staff submitted a disbursement request to CalPERS. The money would be spent consistent with all legal requirements.”
CalPERS confirmed to KCRA 3 that it has finalized the disbursement but has not yet sent out the check.
A CalPERS spokesperson said it was not notified of the recission of authorization to use the retiree health trust funds.
Other parts of the deal would extend the SCTA contract through June 30, 2030, along with a provision that until then, no other union can receive a raise unless SCTA receives the same raise.
KCRA 3 Investigates asked whether SCUSD plans to honor those parts of the agreement. Goldberg said the district is still engaged in conversations with the county and the state regarding the deal and its status.
We also asked the union whether it’s under the impression the deal is in place. SCTA President Nikki Davis Milevsky said in an email: “We reached an agreement to aid the district in its fiscal recovery that improves the district’s budget by $97.5 million. Despite SCOE’s ‘illogical interference’ it’s in the best interest of [Sac City] students, approximately 19% are students with disabilities, for both the district and our union to honor the agreement. That’s what we intend to do and expect the district to do the same.”
In its reasoning for why it rejected the district’s plan, SCOE said using assets from the trust fund would cost more over time and the agreement would restrict the district’s flexibility in the long term.
On Wednesday, a spokesperson for SCOE said the letter to rescind is still in place. Xanthi Soriano went on to say, “The real issue here is that this doesn’t resolve the district’s underlying financial challenges. We want SCUSD to succeed and remain locally controlled, and that means addressing the immediate cash problem as well as making ongoing savings necessary to put the district on solid financial footing.”
Earlier this month, the district appealed the county’s decision to cancel the deal, but the state denied the appeal.
State Superintendent Tony Thurmond confirmed in a statement earlier this week that he is continuing to work with the district and the county on the matter, but said more work is needed to reduce the district’s long-term deficit.
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