The Abridged version:
- A new contract between the Sacramento City Teachers Association and Sacramento City Unified could give the cash-strapped district a lifeline.
- The school district has been on the brink of a state takeover amid an ongoing financial crisis.
Officials are lauding a new agreement between the Sacramento City Teachers Association and Sacramento City Unified as a saving grace for the cash-strapped school district.
Announced Monday, the revised, four-year agreement will “unlock” about $97 million for the district — potentially enough to stay afloat and avoid state intervention.
The money comes from a combination of cost savings, which union leaders and members recently agreed to.
“We are committed to protecting public education in our community from the chopping block of state receivership,” Nikki Davis Milevsky, president of the teachers association, said in a statement.
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Where is the money coming from?
The bulk of the savings will come from readjusting where the district pulls funds to pay for retired teachers’ health benefits.
With the union’s blessing, the district will be able to pay for those expenses with funds from a special reserve. Typically, those payments come out of the district’s general budget.
The fund has a balance of about $160 million, according to union officials. Retiree benefits are estimated to cost between $22 million and $23 million annually over the next three years, saving the district about $68 million total.
Trustees plan to hold a special meeting Thursday to discuss the agreement.