The Abridged version:<\/p>\n
As the Sacramento City Unified School District contends with a multimillion-dollar budget crisis and possible state aid, city leaders are watching with worry from the sidelines.<\/p>\n
Among the list of concerns is that a poor school district reputation might dissuade new residents and families from settling in the area. Plus, education job losses that result from budget cuts and layoffs could hit the city hard.<\/p>\n
City officials have no jurisdiction when it comes to schools.<\/p>\n
The Sacramento City Unified School District is careening towards insolvency, and city of Sacramento leaders are watching with worry from afar.<\/p>\n
\u201cEvery city needs schools to work,\u201d said Sacramento City Councilmember Phil Pluckebaum. \u201cSo, when the district starts really running up against the rocks like it is right now \u2026 Everyone\u2019s worried.\u201d<\/p>\n
Sacramento City Unified has a multimillion-dollar budget crisis and its own staff predict the coffers could be empty by November. There is a real chance that the district will need an emergency loan from the state, and the strings that come with that relief, next school year.<\/p>\n
Economists and housing experts assure that the district falling into receivership would not mean the sky falling on Sacramento. However, the ripple effects would be felt, they said, by district staff losing their jobs and homebuyers being dissuaded from settling in the capital city.<\/p>\n
The structure of leadership in California means city council members and county supervisors do not have a role in running local school districts. That\u2019s the responsibility of elected school board members and their appointed superintendent.<\/p>\n
In the event of the district\u2019s financial collapse and a state takeover, though, the fallout would be shared.<\/p>\n
\u201cFor me,\u201d said Sacramento City Councilmember Karina Talamantes, \u201cit\u2019s just waiting to see what kind of tough decisions the trustees at Sac City Unified School District will make and monitoring from afar.\u201d<\/p>\n
Fear factor for new residents<\/p>\n
One concern, Talamantes said, is whether a floundering school district standing might give prospective homebuyers pause.<\/p>\n
\u201cEverything plays a factor in people\u2019s decision for homeownership,\u201d she said. \u201cAnd if they feel like there\u2019s instability in the city of Sacramento, it will absolutely impact us in attracting new residents.\u201d<\/p>\n
A poor reputation is \u201csomething you can\u2019t sell around,\u201d said Barry Broome, CEO of the Greater Sacramento Economic Council.<\/p>\n
\u201cWe\u2019re going to have to suck it up and support this school district,\u201d Broome said. <\/p>\n