Sacramento City Unified School District delays state takeover with surplus from school shutdowns

Local News

SACRAMENTO, Calif. (KTXL) — After predicting a budget deficit for the last school year, the Sacramento City Unified School District is now reporting a $23 million surplus. 

For a district that was warning it could run out of cash by 2021, prompting a state takeover, it’s good news. 

But they aren’t out of the woods yet, according to the district. 

The district says the surplus is largely because of COVID-19. 

With school essentially shutdown for several months, a lot of expenses were cut. So, they’re still worried about running out of cash, this just gives them some more time. 

Chief Business Officer Rose Ramos is also warning that the savings is not sustainable, since students will eventually return to the classroom. 

And the Sacramento City Teacher’s Association is frustrated over the inaccurate budget forecast.

“They quite frankly scare people,” said David Fisher, president of the SCTA. “And people are quite actually concerned. But then year after year they turn out to not be correct.” 

Budget documents show that every year since 2012 the district has predicted it would spend millions more than it actually did. 

“What we need is to have the most accurate information possible so that when we’re making decisions, we’re making the best decisions for our students based on the best information,” Fisher told FOX40. 

In August, the district said it would run out of cash by February 2021, which would would prompt a state takeover. 

The district says despite the better budget outlook for last year, it doesn’t fix its financial problems. 

FOX40 asked a district spokesperson how the surplus changed that February 20201 prediction for insolvency. Ramos said it’ll likely be delayed but they did not have a new timeline. 

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