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Sac City Unified approves SCTA contract under AB 1200 amid SCOE warning of fiscal risk
Summary
The board approved a two-year contract with the Sacramento City Teachers Association (SCTA) that increases pay and staffing but drew a Sacramento County Office of Education (SCOE) finding that the district faces potential insolvency without corrective action.
The Sacramento City Unified School District Board on Tuesday approved a memorandum of understanding with the Sacramento City Teachers Association under AB 1200 that raises pay, expands staff at school sites and adds several programmatic provisions.
The agreement, negotiated over the summer and reached June 27, includes a 2% across-the-board raise for 2025–26 and 2% for 2026–27, a $1,500 bilingual stipend, a new salary schedule for speech-language pathologists and other changes to leave and safety language, district negotiators said.
“Kansas Macaron” (transcript spelling), the district’s chief human resources officer, summarized the agreement’s changes at the board meeting. Janae Marking, the district’s chief business and operations officer, presented the estimated budget impact and financial outlook.
“This agreement most certainly was an investment in staff, both on competitive compensation, but then also additional staff out at our schools working directly with our students for that wraparound care that is needed,” Marking said. She then presented staff estimates that the contract would add roughly $10.6 million in 2025–26, $22.5 million in 2026–27 and an additional $4.7 million in 2027–28.
At the same time, Marking reported a letter the district received from the Sacramento County Office of Education reviewing the AB 1200 disclosure. The SCOE review said the district currently meets the required reserve for 2025–26 but “is projecting fiscal insolvency for 2026–27 if we don't make corrective action,” and asked the district to revise its rightsizing plan to cover the increased costs.
“SCOE finds that we are at risk of not being a going concern,” Marking told the board, repeating language from the SCOE letter. The district must submit a revised plan with its first interim budget report and address SCOE’s request for additional savings, she said.
Board members voted unanimously to adopt the AB 1200 MOU after the public hearing, with Member Jean moving and Member Navarro seconding. The board’s approval will allow staff to submit the required materials to SCOE while district leaders continue work to identify budget reductions and updated unaudited actuals, Marking said.
The district plans to return to the board with unaudited actuals at the next meeting and to negotiate additional budget adjustments. Marking told the board that “difficult decisions” will be required but pledged to comply with SCOE’s timeline to show the district can meet reserve requirements over the coming years.
The board’s action completes the AB 1200 public disclosure and approval step required when a school district enters into collective bargaining agreements that materially affect its financial outlook.
