$43 million budget shortfall this school year<\/a> and a projected $80 million deficit by the 2027-2028 school year.<\/p>\nA couple months ago the Sacramento County Office of Education required the school board to submit a fiscal solvency plan to prevent further county or state intervention.<\/p>\n
In the fiscal solvency plan, around 50 administration positions are slated to be cut by the end of March to reduce the number of full-time-equivalent administrators from 328 to 270 by the 2026-27 school year. This will save the district approximately $14.7 million.<\/p>\n
It is currently unknown what specific administration positions will be cut such as those on school campuses or in the central office.<\/p>\n
In addition, the district will cut all departments by 20%, plus enrollment reductions.\u00a0<\/p>\n
The district attributed the deficit due to unforeseen year-end payments for salaries, books and supplies, contracts, special education and maintenance. As a result, the district will be at risk of intervention by the Sacramento County Office of Education and could lose budget authority and face possible program reductions<\/p>\n
Sacramento County Office of Education superintendent Dave Gordon said the district will need more savings to avoid getting a loan from the state. Gordon said two fiscal advisors from the county office have been hired to help the school district with its budgeting.\u00a0<\/p>\n
Gordon also revealed, as the second line of defense, they have implemented the \u201cstay and rescind authority\u201d which means Sacramento City Unified is not allowed to spend money in one area without cutting it in another area.<\/p>\n
\u201cWhat happens if they do run out of cash, they can\u2019t make enough cuts to stay solvent, and they literally run out of cash, and they can\u2019t make payroll, right,\u201d Gordon said. \u201cWhat happens then is that they must apply for a state loan, an emergency state loan from the legislature to be able to continue to operate the schools.\u201d<\/p>\n
He said the district will have to find a legislator to sponsor the bill if it\u2019s needed, to provide them with an emergency appropriation; however, Gordon emphasized it\u2019s not a gift but a loan.<\/p>\n
\u201cOnce you fall into insolvency and receivership, your situation automatically gets worse because now you have a debt on top of your original shortfall and you have to pay that loan back with interest,\u201d Gordon said.<\/p>\n
He added if the district gets the loan as well, their school board\u2019s authority will be dissolved and the superintendent, Lisa Allen, would also be removed. After this, the district is then run by a county administrator or trustee.<\/p>\n
\u201cThe person who runs the district, in lieu of there being a superintendent, would be by me, the county superintendent, with the consent of both the State Superintendent and the president of the State Board of Education, they must affirm my appointment to that position,\u201d Gordon said in reference to if the district receives the loan.<\/p>\n
In the years the loan is in place, Gordon said the district will need to be strict about its spending to pay off the loan and implement local governance again.\u00a0<\/p>\n
\u201cYou could pay back very quickly or very, very slowly, and the slower you pay back, the more you stay under some level of receivership,\u201d he said.<\/p>\n
Some other cuts the district is making to immediately address issues include:\u00a0<\/p>\n
Eliminating use of \u201cblanket\u201d purchase orders.\u00a0<\/p>\n
Reduce department supply budgets by 30% except for custodial<\/p>\n
Delay purchase of adopted math curriculum until after July 1, 2027<\/p>\n
Delay purchase of chromebook refresh until after July 1, 2026<\/p>\n
Discontinue USPS\/hard copy information and replace with electronic delivery<\/p>\n
Relocate classes from McClaskey Adult Center to Charles A. Jones Career and Education Center<\/p>\n
\n\tRelated<\/p>\n","protected":false},"excerpt":{"rendered":"Already under financial duress, the Sacramento City Unified School District revealed more unsettling news during a special board…\n","protected":false},"author":2,"featured_media":166199,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[912,121,918,919,123,122],"class_list":["post-166198","post","type-post","status-publish","format-standard","has-post-thumbnail","category-sacramento","tag-carousel","tag-sacramento","tag-sacramento-city-unified-school-district","tag-sacramento-county-office-of-education","tag-sacramento-headlines","tag-sacramento-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/166198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=166198"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/166198\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/166199"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=166198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=166198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=166198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}