SCUSD’s budget adviser hire was blocked by its fiscal watchdog. Here’s what to know

Now that Sacramento County’s fiscal adviser has canceled the Sacramento City Unified School District board’s contract with a consulting firm, the district faces its budget crisis with fewer options and a ticking clock. The district is projected to run out of cash in September, which would trigger a state takeover.

We wrote a story detailing what this means and the reactions to it.

FULL STORY: How a contract cancellation reveals strain between SCUSD board, staff and watchdogs

Here are key takeaways:

• The board voted 7-0 last month to spend up to $400,000 on budget advisory services from HYA Corporation. The next day, county-assigned fiscal adviser Luz Cazares killed the deal, calling it inconsistent with the district’s financial recovery.

• This is the first time the board has been overruled during its fight to stay solvent and retain local control. Board President Tara Jeane said she was “incredibly disappointed, but not surprised.”

• The district’s deficit has grown to $170 million since the first interim budget update. Interim Chief Business Officer Lisa Grant-Dawson said a $100 million deficit had been “chasing” the district for years.

• Trustee Taylor Kayatta said that Cazares’ decision to block the contract was the result of “bad blood between highly paid professionals and their fights at Oakland Unified” rather than the needs of SCUSD. Cazares and Grant-Dawson worked together to get the Bay Area-district out of insolvency, after which HYA Corporation took over fiscal responsibility. The firm’s performance has received mix reception from Oakland leaders.