\u201cThe long-term financial recovery of the district will take time and require extraordinary fiscal discipline, not just short-term loans and redirected funds, all of which must be repaid,\u201d Soriano said in a news release. \u201cThe district is currently spending beyond its means and must identify the programs and services it is going to reduce or eliminate.\u201d<\/p>\n
Soriano said the new three-year agreement with the union limits the district\u2019s ability to make further changes to the labor contract as a source of one-time or ongoing budget savings. She also said many of the district\u2019s other proposed budget solutions lacked sufficient specificity or demonstrated feasibility.<\/p>\n
Under state law, the Office of Education has the authority to reject actions taken by Sac Unified because of the district\u2019s risk of fiscal insolvency.<\/p>\n
The district currently faces a structural deficit of approximately $221.8 million. The Fiscal Crisis and Management Assistance Team has projected the district could enter state receivership by June.<\/p>\n
Nikki Davis-Milevsky, president of the Sacramento City Teachers Association, urged the district to appeal the decision to state schools\u2019 Superintendent Tony Thurmond.<\/p>\n
\u201cBy overturning this agreement, C\u00e1zares undermines our democratically elected board\u2019s authority to solve local issues, compromises our district\u2019s ability to avoid insolvency and, in effect, prolongs the need for her own paid oversight,\u201d Davis-Milevsky said.<\/p>\n