Fiscal advisor puts SCUSD’s latest agreement with teachers union on hold, citing issues with public disclosure
SACRAMENTO, Calif. —
The Sacramento City Unified School District’s latest deal with its teachers union has been temporarily put on hold.
The fiscal advisor appointed by the Sacramento County Superintendent of Schools to support SCUSD said that she was staying the district’s new contract with teachers because of a failure to follow certain public disclosure processes.
(Previous coverage in the video above.)
In a letter to SCUSD’s Board of Education on Friday, fiscal advisor Luz Cázares said she was suspending the deal. The letter argued that two processes weren’t followed before the district’s board of supervisors acted on its memorandum with the Sacramento Teachers Association at its Sept. 10 special board meeting.
–The district “must disclose at a public meeting the major provisions of the agreement, including the costs that would be incurred under the agreement for the current and subsequent fiscal years.”
–School districts “with a negative budget certification” must give the county office of education “10 working days to review and comment on the fiscal impact of a proposed collective bargaining agreement before it is presented to the governing Board for approval.”
“We look forward to receiving the complete and signed disclosure documents. Once those materials are received, the required review can begin,” the letter said. “Again, we note that the Board needs the best information to make the best decisions. This requires the district Superintendent to provide the Board with sufficient time to review and consider agenda items.”
The move comes after the SCUSD board recently unanimously approved a multi-year budget plan that relies, in part, on the new contract with the teachers’ union to prevent a state takeover.
The plan aims to bring the district’s deficit from nearly $229 million to a surplus of just over $160,000 by the 2026-27 fiscal year. It would then anticipate a $1.9 million deficit in 2029.
An initial memorandum of understanding with the district estimated the teachers contract would save over $97 million by using funds from the retiree health benefit fund, Medi-Cal reimbursements, and money allocated for unfilled staff vacancies. A second MOU provided another $37 million in fiscal relief through June 2030, according to the union.
On July 31, the county’s fiscal advisor rejected the first proposed deal with teachers, saying the plan would delay a fiscal crisis, not solve it.
The district appealed the rejection to the state, which was denied by Superintendent of Public Instruction Tony Thurmond.
At the same time, Thurmond said he believed the district’s deal with its union had “improved the school district’s ability to meet its financial obligations.”
He urged both parties to continue working together.
The County Office of Education said in a statement Wednesday that: “We can confirm that the Fiscal Advisor has temporarily stayed the Board’s approval of the agreement so the required fiscal reviews can be completed. SCOE’s role is to provide fiscal oversight and help ensure the district has a sustainable short- and long-term financial plan that protects students, families, employees, and educational programs. That continues to be our focus.”
A spokesperson for the district said: “SCUSD is continuing to meet and collaborate with SCOE to understand their request.”
The district is expected to share more about its plan at a Board of Education meeting on Thursday.