Sacramento city schools might see state takeover. What that would mean for students
The Sacramento City Unified School District is on the brink of fiscal insolvency, and a California state government financial agency is urging the city school board to request a state loan immediately.
But the board is hesitant to agree to the loan because of the repercussions that it would have on the community. Accepting the loan would trigger a state takeover of the district, stripping local control from elected trustees and the newly hired superintendent.
Sacramento Bee reporter Jennah Pendleton has been following the developments.
FULL STORY: Sacramento school board resists state agency’s urging to surrender to insolvency
Here’s a summary of what’s happened so far:
• Cash runs out soon: The state’s Fiscal Crisis Management and Assistance Team projects the district will be out of money by February, if not January. Without a timely state loan, 5,000 school employees could go without pay.
• Loss of local control: Accepting a state loan triggers receivership. Recently appointed SCUSD Superintendent Cancy McArn would be replaced by a county-appointed administrator, and elected school board members would be powerless.
• Strict state oversight: The district would have to meet more than 150 FCMAT standards covering financial management, student achievement and governance before gradually regaining autonomy.
• Long-term debt impact: The loan must be repaid with interest, meaning money that could fund student programming would instead go toward debt repayment for years.
• Tight legislative window: FCMAT’s Michael Fine warned the board to act before the legislative session ends Aug. 30. Waiting until the next session could delay funds until late March — well after the district runs out of cash.
• Deep cuts still needed: The district has identified $83 million in savings over seven months but needs to find an additional $144 million between July and April to prevent a state takeover.
• Board resistance, what’s next? Board President Tara Jeane, along with trustees Jasjit Singh and Taylor Kayatta, want to explore alternatives. “We’re not giving up,” Jeane said. New information about state funding for schools will come with the governor’s May budget revision on Thursday. Singh said that he didn’t feel comfortable moving forward before seeing how much additional money the district could receive in the final state budget, adopted in June. School districts then have 45 days to revise their annual budgets based on the actual funding they will receive.
