Sacramento school district revises budget to tackle $158 million deficit

Esteban ReynosoSACRAMENTO, Calif. —

The Sacramento City Unified School District has approved budget revisions to address a $158 million deficit and prevent running out of money next year.

The board approved changes to its 2026-27 budget, which include more than $70 million in revenue adjustments from sources such as professional development block grants and retiree reimbursements. The board is also revising its spending projections for special education.

In addition, the board previously approved over $66 million in spending cuts through its fiscal stabilization plan. These combined measures aim to reduce the deficit and help the district avoid a state takeover or the need to take out a loan.

“It hurts when you have to make cuts, but there’s some celebration that this district will not have to take out a loan,” board member Jasjit Singh said. “Even though we were told multiple times that we should, and I think that created a lot of concern in the community.”

If the new plan is approved and all reductions and changes are implemented, the district projects a net positive of more than $33 million.

The board has until September 30 to submit the plan to the Sacramento County Office of Education for approval. The county will then have 10 working days to review it.

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