{"id":166810,"date":"2026-02-06T15:29:09","date_gmt":"2026-02-06T15:29:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/166810\/"},"modified":"2026-02-06T15:29:09","modified_gmt":"2026-02-06T15:29:09","slug":"sacramento-city-unified-sees-path-to-avoid-insolvency-state-takeover","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/166810\/","title":{"rendered":"Sacramento City Unified sees path to avoid insolvency, state takeover"},"content":{"rendered":"<p>District staff say the focus now is cutting spending mid-year while building a leaner budget moving forward.<\/p>\n<p>SACRAMENTO, Calif. \u2014 <a href=\"https:\/\/www.scusd.edu\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Sacramento City Unified<\/a> leaders say there may be a path forward as the district works to avoid insolvency and a <a href=\"https:\/\/www.abc10.com\/article\/entertainment\/television\/programs\/to-the-point\/what-comes-next-as-sac-city-unified-considers-major-cuts-to-avoid-state-takeover\/103-2c6254a4-7a13-4673-a860-cbbd58fb2515\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">possible state takeover<\/a>.<\/p>\n<p>The tone has shifted from frustration last week to cautious optimism, with officials signaling the district may be inching toward a plan to stabilize its finances.<\/p>\n<p>Board members say there is now a clearer path to avoid insolvency and possibly a state takeover. New numbers show the district no longer expects to run out of cash. Staff say Sacramento City Unified should finish with just over $3 million in cash on hand while still carrying a significant deficit.<\/p>\n<p>\u201cWe are tentatively thrilled. Tentative, excited that we have cash through June and that fiscal insolvency is not in the next four or five months. I say tentatively because we don&#8217;t know what info is coming,\u201d said SCUSD <a href=\"https:\/\/www.scusd.edu\/about\/board-of-education\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Board President Tara Jeane<\/a>.\u00a0<\/p>\n<p>The updated solvency plan identifies nearly $44 million in savings the district believes it can realistically achieve. Still, the long-term outlook remains challenging, with a projected deficit growing to $113 million for the next school year.<\/p>\n<p>\u201cI was excited when I began to hear what was coming. Do we have everything solved? No. Do we have a lot more work to do? Absolutely. Are we committed to doing that? Yes,\u201d Jeane said.<\/p>\n<p>District staff say the focus now is on cutting mid-year spending while building a leaner budget going forward.<\/p>\n<p>Last week, the board approved reassigning or laying off administrators until reaching a 270-employee level and furloughing non-union staff for 12 days.<\/p>\n<p>Some district employees and unions are pushing back on the proposed furloughs and administrator layoffs.\u00a0<\/p>\n<p>Members of United Professional Educators (UPE), a union for administrators and certificated staff in Sacramento City Unified, said they disagree with the proposed changes. They said they understand the district is facing a crisis, but argue that the situation does not allow the district to breach its agreements.<\/p>\n<p>\u201cChanges of this magnitude without bargaining are not procedural oversights,&#8221; said the UPE representative.<\/p>\n<p>\u201cWhen administrators are taken out of the workplace, then schools do not function the same,&#8221; said a SCUSD administrator. &#8220;School leaders are not asking for special treatment, but we are asking for fair treatment.\u201d<\/p>\n<p>\u201cFurloughing unrepresented staff, once deemed essential, means furloughing our chefs and our nutrient supervisors who make this program work,&#8221; said an attendee.<\/p>\n<p>The board told staff it does not want to cut anything that was negotiated with unions.<\/p>\n<p>Later in the meeting, the board removed the furlough option from the table.<\/p>\n<p>The district\u2019s next solvency plan update is scheduled for Feb. 19 as leaders work to prove the numbers add up.<\/p>\n<p>                <img decoding=\"async\" class=\"photo__placeholder\" loading=\"eager\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/4307a921-f3b8-4d4a-8977-fd6b775a0ff6_16x9.jpg\"\/><br \/>\n                <img decoding=\"async\" class=\"photo__main\" loading=\"eager\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/4307a921-f3b8-4d4a-8977-fd6b775a0ff6_1140x641.jpg\"  alt=\"\" style=\"opacity:0\" onload=\"this.style.opacity=1\"\/><\/p>\n<p>Watch more on ABC10:\u00a0<a href=\"https:\/\/www.abc10.com\/article\/news\/local\/sacramento\/sacramento-city-unified-school-district-superintendent-lisa-allen-resigns\/103-2b2c2e81-292b-4eea-9be9-c4944d3bf381\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Sacramento City Unified School District Superintendent Lisa Allen resigns<\/a><\/p>\n<p>    ABC10: Watch, Download, Read<\/p>\n","protected":false},"excerpt":{"rendered":"District staff say the focus now is cutting spending mid-year while building a leaner budget moving forward. SACRAMENTO,&hellip;\n","protected":false},"author":2,"featured_media":166811,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[121,123,122],"class_list":{"0":"post-166810","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-sacramento","8":"tag-sacramento","9":"tag-sacramento-headlines","10":"tag-sacramento-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/166810","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=166810"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/166810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/166811"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=166810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=166810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=166810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}