The Abridged version:
- The Sacramento City Unified School District spent $43 million more than previously estimated last school year.
- District officials said Thursday there will be necessary budget “sacrifices” this year but that they aim to avoid disrupting students’ experiences.
- Without action, the district may be subject to intervention from the Sacramento County Office of Education and a state-assigned fiscal advisor.
Sacramento City Unified School District spent $43 million more than previously thought last school year, putting school services in jeopardy this year and leaving the district at risk of losing local control over its budget.
The budget costs, revealed in a new report presented at the district’s school board meeting Thursday night, included unforeseen year-end payments for salaries, books and supplies, contracts, special education and maintenance.
“That fact, combined with anticipated costs associated with recently completed and ongoing labor partner negotiations, have created a critical financial challenge,” said Brian Heap, SCUSD spokesperson.
The district is on track to have a cash balance below state requirements by the end of this school year and be in negative territory by next fall.
Without making changes, the district may be subject to intervention from the Sacramento County Office of Education and a state-assigned fiscal advisor, according to the district’s latest report.
$35 million in savings needed
In a letter to the district, the Sacramento County Office of Education estimated Sacramento Unified needs to come up with about $35 million in savings to remain financially solvent, Janea Marking, chief business and operations officer for the district, said in Thursday’s meeting.
“Discussing reductions and changes of this magnitude will be difficult and will most certainly impact our community,” Marking said in her presentation to the board.
“It’s difficult to conceive … that we can realistically reduce districtwide operations by that much and continue with the same level of service expected currently,” she added.
Spending freezes, further cuts undetermined
As an initial step, the district will implement a spending freeze, starting Oct. 1, on things such as non-classroom hiring, travel by district personnel and non-emergency overtime.
“Those measures alone will not fix our problems,” Heap said in a statement. “There will be many other budgetary sacrifices to make in the coming months to get the District back on a path to solvency before the end of the fiscal year.”
What those sacrifices are is still unknown. District staff will have another budget update for the board in December.
Heap said that in their efforts to stabilize, “it is our every intention to avoid major disruption to student opportunities, programs, and the day-to-day educational experience at SCUSD.”
Savannah Kuchar is a reporter covering education. She came to Sacramento to be a part of the Abridged team and contribute to a crucial local news source.