Sacramento schools could run out of cash by next year

The Sacramento City Unified School District is projected to run out of money by November 2019, officials said Wednesday.“Without further actions, this means the District would be unable to fulfill its financial obligations and would not have enough cash to cover employee payroll, payments to vendors and others,” the school district said in a statement.The district is hoping to save between $11 million and $16 million a year by switching to a different health care plan. The district proposed to shop around existing health care plans to get similar benefit packages at much lower prices. The district needs approval from all five employee unions before switching. While four of the unions have already signed off, the Sacramento City Teachers Association has not.Last week, unions representing staff were invited to a ceremony to sign off on the plan, but the teachers’ union didn’t show.Sacramento City Teachers Association President David Fisher told KCRA on Thursday, "We already reached and signed an agreement on health plan savings last year." The district said it has offered three dates to meet with the SCTA in order to reach an agreement.Until then, the school district is implementing other cost-saving strategies that do not need agreement from the unions, which include spending less on administrators.“While these actions have resulted in some savings, they will not yield the ongoing large savings needed to keep the District financially solvent in the long-term,” the district said.

The Sacramento City Unified School District is projected to run out of money by November 2019, officials said Wednesday.

“Without further actions, this means the District would be unable to fulfill its financial obligations and would not have enough cash to cover employee payroll, payments to vendors and others,” the school district said in a statement.


The district is hoping to save between $11 million and $16 million a year by switching to a different health care plan. The district proposed to shop around existing health care plans to get similar benefit packages at much lower prices.

The district needs approval from all five employee unions before switching. While four of the unions have already signed off, the Sacramento City Teachers Association has not.

Last week, unions representing staff were invited to a ceremony to sign off on the plan, but the teachers’ union didn’t show.

Sacramento City Teachers Association President David Fisher told KCRA on Thursday, "We already reached and signed an agreement on health plan savings last year."

The district said it has offered three dates to meet with the SCTA in order to reach an agreement.

Until then, the school district is implementing other cost-saving strategies that do not need agreement from the unions, which include spending less on administrators.

“While these actions have resulted in some savings, they will not yield the ongoing large savings needed to keep the District financially solvent in the long-term,” the district said.