Photo courtesy of Sacramento City Unified School District

SACRAMENTO, CA (MPG) - The Sacramento County Superintendent of Schools (County Superintendent) sent letters on Aug. 27 to Sacramento City Unified School District (SCUSD) Superintendent Cancy McArn and State Superintendent of Public Instruction Tony Thurmond outlining the continued Sacramento County Office of Education (SCOE) approach to addressing SCUSD's immediate cash needs and ongoing structural deficit. 

The letters follow the Aug. 10 decision by the state superintendent and the executive director of the state board of education to deny SCUSD's appeal of the SCOE-appointed fiscal advisor's rescission of the district's memorandum of understanding (MOU) with the Sacramento City Teachers Association (SCTA). 

In its letter to SCUSD, the county superintendent states that because the MOU has been rescinded, the district is expected to cancel its request for CalPERS to transfer funds from the district's health benefit trust and return any transferred funds to the trust. It also encouraged the district to amend the MOU by removing parts which could add costs while retaining provisions that produce savings. 

SCUSD currently projects a $221.8 million unrestricted general fund deficit and a negative $283.6 million unrestricted general fund balance in the current fiscal year. In the 2027-28 fiscal year, district projections show the deficit growing to $226.9 million and the unrestricted general fund balance falling to negative $510.5 million. In the letter, it is emphasized that a short-term infusion of cash, without sufficient ongoing savings, would postpone rather than solve the district's financial crisis. 

“The issue is not simply whether the district can get through the next few months, but whether it can remain financially healthy in the years ahead,” Sacramento County Superintendent of Schools Dave Gordon said. “We will continue working cooperatively with SCUSD and the Fiscal Crisis and Management Team (FCMAT) on any viable plan that provides sufficient cash to address the immediate crisis and ongoing savings to put the district on a sustainable financial path.”

SCUSD’s board of education and superintendent remain responsible for the district's fiscal condition and for making the decisions needed to return the district to fiscal health. The county superintendent's objective is to help SCUSD make the decisions necessary to restore its financial health while protecting students, families, employees and educational programs. If the district runs out of cash, it will be unable to pay its employees and vendors, which would endanger its schools and educational programs. 

SCOE has provided fiscal, educational program and human resources experts, as well as an executive coach, to support the district. Also, Superintendent Dave Gordon and Associate Superintendent Nick Schweizer meet biweekly, and the fiscal advisor meets more often with district leaders to monitor cash flow, provide feedback on budgets, proposed savings, and the costs and impacts of labor agreements. 

Gordon reiterated, “Our priority remains helping SCUSD protect students and educational programs and fully restore its financial health so that it is able to remain locally controlled.” 

To read the response letter to state superintendent of public instruction regarding SCUSD, visit: catapultfilemanager-prod.s3.us-west-2.amazonaws.com/539908eb-75d1-42bb-967b-e166bd75683e/08-27-26_response_spi_letter.pdf

To read the letter to SCUSD regarding fiscal oversight of Sacramento City Unified School District, visit: catapultfilemanager-prod.s3.us-west-2.amazonaws.com/6a0d7c73-43c9-4f86-8ea4-98fd8ca83587/08-27-26_scusd_spi_letter.pdf