Sac City Unified is less than a year away from running out of cash, experts say, if it doesn’t make drastic changes. The State Superintendent is helping out.

SACRAMENTO, Calif. — As the Sacramento City Unified School District works to avoid running out of money, California Superintendent of Public Instruction Tony Thurmond is lending his help in the search for a solution.

“Productive conversations continued today as we brought SCUSD and SCOE [Sacramento County Office of Education] together to work toward fiscal solutions,” Thurmond wrote on X late Monday afternoon. “The discussions can be tough at times, but both sides remain at the table and focused on a path forward.”



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In the post, he shared a longer statement crediting district and SCOE leadership for ongoing talks.

“We convened the parties again today, and they demonstrated their willingness to have candid and sometimes difficult discussions about how to help the district work through both near-term cash-flow issues and a structural deficit,” Thurmond said.

This is the latest development in a weeks-long – and bruising – back-and-forth between SCUSD and SCOE, where a county-appointed fiscal advisor rejected a contract agreement the district had struck with the Sacramento City Teachers Association (SCTA). The district and SCTA said it would have freed up close to $100 million as the district looks to remain solvent, but the advisor said it tied the district’s hands long-term. In response, the SCUSD Board of Education unanimously approved an appeal to the State Superintendent’s office, asking Thurmond to not only overturn the rejection of that contract but also find SCOE ineffective in helping SCUSD plot a financial path forward.

Thurmond opted to not override SCOE’s authority; he let the contract rejection stand. However, in a separate letter, he admonished SCOE, saying he believed the contract would have helped the district and urged the district and county to continue working toward a solution. He even offered his help – without imposing it.

Now, it appears from Thurmond’s post on X that parties have revisited the SCTA contract agreement – also called an memorandum of understanding (MOU).

“The district has an opportunity to secure $67 million toward that end as part of an MOU with the Sacramento City Teachers Association, but additional work must also be done to reduce the long-term deficit,” Thurmond wrote Monday. “While these conversations are tough at times, they are leading to the exchange of good insights and information. We will continue bringing the parties together for further dialogue.”

ABC10 reached out to the district early Monday evening and did not immediately hear back. We’ll add that response once we receive it.

The SCUSD Board of Education has its next meeting on Thursday, where members are set to hear an update on the fiscal solvency plan.

Watch Also: Sacramento City Unified School District could run out of money in late April