Sacramento City Unified School District leaders are pushing to find solutions to close a budget deficit in the tens of millions of dollars and, in turn, avoid a state takeover of the district due to its current financial crisis.“If we run out of cash and we can’t pay our bills, we then have to get a loan from the state and that is officially state receivership,” said Sacramento City Board of Education President Tara Jeane on Tuesday.District and county leaders stressed Tuesday that all efforts right now are focused on circumventing that option. A state receivership situation would include an appointed trustee being brought in to run the district and serve as the board.In a letter sent to district families Monday afternoon, Jeane said there had been “a problematic lack of clarity on the scope of our deficit” and that action to correct the deficit had stalled in recent months.“I want to be direct: our district is facing a fiscal crisis that demands immediate, disciplined, and transparent action,” she wrote, citing systemically poor budgeting, increased spending, an overreliance on contracts and incomplete data as reasons that have contributed to the crisis in recent years. According to a December report, the district is facing a $51.6 million deficit. An updated figure is expected to be shared at the Board of Education meeting scheduled for Thursday, when the district’s Interim Chief Business and Operations Officer, Lisa Grant-Dawson, will present the board with an update to its Fiscal Solvency Plan.“We have asked for specificity,” Jeane said. “We need to make new decisions.”Any decision about layoffs needs to be made by March 15, Jeane said. More clarity about whether that route would be exercised as an avenue for cost saving would be clearer, she said, next week.“This board is committed to having hard conversations and making those decisions right now, based on what we hear from our students and from our community, as best we can, so that local decision making is still guiding what we do,” Jeane said.The Sacramento County Office of Education is assisting the Sacramento City Unified School District with its attempt to avoid what’s called “fiscal insolvency” by providing financial experts to help guide solutions.”They’re facing, potentially, a shortfall big enough to cause them to go bankrupt. And if they go bankrupt, if they go insolvent, they’re required to get a state loan, which comes with interest,” said Dave Gordon, Superintendent of the Sacramento County Office of Education. “We are trying to give all the help we can to make sure they don’t have to become insolvent.”Gordon said, however, if the district is found to be insolvent, education will continue for district students. “I think more information will be forthcoming as we run the numbers and get more confident of how much needs to be cut and whether it’s there to be cut,” he said. A spokesperson for Sacramento City Unified shared a statement with KCRA 3 on Tuesday afternoon:“There is frustration and disappointment within our system right now – from both the Board of Education and staff – at the pace of progress toward reaching our fiscal solvency goals.District staff feel confident that this Thursday’s update to the Board will demonstrate significant progress toward closing our budget deficit.Sacramento City Unified remains committed to avoiding state receivership and maintaining local control of the school district, while minimally impacting our ability to serve students.”The Board of Education meets on Thursday evening.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
Sacramento City Unified School District leaders are pushing to find solutions to close a budget deficit in the tens of millions of dollars and, in turn, avoid a state takeover of the district due to its current financial crisis.
“If we run out of cash and we can’t pay our bills, we then have to get a loan from the state and that is officially state receivership,” said Sacramento City Board of Education President Tara Jeane on Tuesday.
District and county leaders stressed Tuesday that all efforts right now are focused on circumventing that option. A state receivership situation would include an appointed trustee being brought in to run the district and serve as the board.
In a letter sent to district families Monday afternoon, Jeane said there had been “a problematic lack of clarity on the scope of our deficit” and that action to correct the deficit had stalled in recent months.
“I want to be direct: our district is facing a fiscal crisis that demands immediate, disciplined, and transparent action,” she wrote, citing systemically poor budgeting, increased spending, an overreliance on contracts and incomplete data as reasons that have contributed to the crisis in recent years.
According to a December report, the district is facing a $51.6 million deficit. An updated figure is expected to be shared at the Board of Education meeting scheduled for Thursday, when the district’s Interim Chief Business and Operations Officer, Lisa Grant-Dawson, will present the board with an update to its Fiscal Solvency Plan.
“We have asked for specificity,” Jeane said. “We need to make new decisions.”
Any decision about layoffs needs to be made by March 15, Jeane said. More clarity about whether that route would be exercised as an avenue for cost saving would be clearer, she said, next week.
“This board is committed to having hard conversations and making those decisions right now, based on what we hear from our students and from our community, as best we can, so that local decision making is still guiding what we do,” Jeane said.
The Sacramento County Office of Education is assisting the Sacramento City Unified School District with its attempt to avoid what’s called “fiscal insolvency” by providing financial experts to help guide solutions.
“They’re facing, potentially, a shortfall big enough to cause them to go bankrupt. And if they go bankrupt, if they go insolvent, they’re required to get a state loan, which comes with interest,” said Dave Gordon, Superintendent of the Sacramento County Office of Education. “We are trying to give all the help we can to make sure they don’t have to become insolvent.”
Gordon said, however, if the district is found to be insolvent, education will continue for district students.
“I think more information will be forthcoming as we run the numbers and get more confident of how much needs to be cut and whether it’s there to be cut,” he said.
A spokesperson for Sacramento City Unified shared a statement with KCRA 3 on Tuesday afternoon:
“There is frustration and disappointment within our system right now – from both the Board of Education and staff – at the pace of progress toward reaching our fiscal solvency goals.
District staff feel confident that this Thursday’s update to the Board will demonstrate significant progress toward closing our budget deficit.
Sacramento City Unified remains committed to avoiding state receivership and maintaining local control of the school district, while minimally impacting our ability to serve students.”
The Board of Education meets on Thursday evening.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel