The Abridged version:
- Sacramento City Unified School District leaders presented a new plan they said will be enough to save the district from its pressing budget crisis.
- Earlier this week, the Sacramento City Teachers Association announced an agreement that would send almost $100 million back to the district.
- A school budget expert said the teachers association deal on its own was not enough to stave off a state takeover. District officials believe their broader plan will keep the state at bay.
After almost a year of budget woes, wringing hands and start-and-stop solutions, Sacramento City Unified School District leaders say they finally have the fix to get out of a multimillion-dollar hole and avoid a state bailout.
The step-by-step plan, crafted by the superintendent’s office and unveiled Thursday, echoes a cost-cutting blueprint from last fall, which on multiple fronts fell short of manifesting needed savings.
This time, though, school board members say they are confident they have it right.
“We finally got a plan that clearly articulates actionable items,” said Trustee Jasjit Singh.
Heading into a new school and fiscal year, district officials are anticipating — and racing to prevent — a budget shortfall of about $135 million come next summer.
It’s “the fiscal equivalent of a five-alarm fire,” according to district documents.
During a special board meeting Thursday, staff presented and the board unanimously approved a multi-part strategy on the heels of a freshly announced agreement between the district and teachers’ union.
What are the cuts, changes?
Staff identified several reductions that they say will total roughly $158 million in savings during the 2026-27 school year. That exceeds their target by about $23 million.
These measures include:
- Efforts to tackle chronic absenteeism and improve attendance levels, which determine state funding
- Eliminating district-issued cell phones to staff
- Pivoting away from using the Golden 1 Center for high school graduations
- Canceling a districtwide 6th grade science field trip
Some changes are less tangible, like shoring up district-wide budget processes to reduce the risk of unexpected expenses.
Others are more tentative, such as considering if it’s worth continuing programs like International Baccalaureate or Reserve Officers’ Training Corps for high schoolers, or the Waldorf methodology at elementary sites.
Parcel tax proposed
Officials are also banking on a proposed parcel tax, money from which would go toward rising special education costs.
The tax would cost property owners $95 a year and is expected to bring the district about $10 million to $12 million in annual revenue.
Voters in November will decide if this piece of the plan comes to fruition. A parcel tax needs approval from at least two-thirds of voters to pass.
Teachers union deal was ‘a start’
About a third of this year’s savings is owed to a recent agreement between the district and Sacramento City Teachers Association, which runs through 2030 and estimates about $48 million in relief.
The bulk of that comes from a temporary change in how retired teachers’ health benefits are funded. Instead of the usual general fund, the district can pull from a special reserve account over the next three years, saving about $23 million annually.
However, that deal alone came up short of what the district needs, according to county and state-level experts.
The Fiscal Crisis and Management Assistance Team, a state-funded organization that aids districts in budget trouble, predicted the district would run out of cash in February. On its own, this agreement with the teachers pushed that deadline back by a couple of months.
“It doesn’t solve their whole problem,” Michael Fine, CEO of the crisis team, told Abridged.
But, he said, “It’s a start.”
County leaders express concerns
A downside of the agreement, Fine said, is that it locks up bargaining between the district and teachers union through June 2030.
That would become an issue if the district enters into state receivership. Unlike a business bankruptcy, union contracts are not voided when the district becomes insolvent and outside leaders step in.
“In theory, the teachers union can say, ‘You can’t talk to us for three years,’” Fine said.
County Office of Education Superintendent Dave Gordon expressed similar concerns about the contract extension in a letter to the district last week.
Despite the board approving the new deal unanimously Thursday, advisors appointed by Gordon to oversee Sacramento City Unified have the power to overturn the decision. Gordon in his letter pointed out apparent flaws in the agreement but did not indicate the likelihood of a county recission.
District Trustee Taylor Kayatta pushed back, making the point that if district or outside officials tried to push a pay cut on teachers, the union would likely call for a strike.
“That is not what’s best for our kids,” Kayatta said.
