FCMAT warns Sacramento City Unified is at high fiscal risk; board approves negative interim certification
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Summary
State fiscal advisors told trustees the district is at high risk of insolvency and urged immediate steps; staff recommended and the board approved a first‑interim report with negative certification while members demanded monthly tracking, staffing analyses and clearer special‑education oversight.
The Sacramento City Unified School District’s trustees received a blunt fiscal health review Dec. 18 from the state’s Fiscal Crisis & Management Assistance Team and then approved a first‑interim financial report that staff said requires a negative certification.
Mike Fine, chief executive officer of FCMAT, told the board the district’s situation “is a districting crisis” and described a long history of governance and budget problems. Jennifer, the FCMAT lead analyst, said the team’s fiscal health risk analysis gave the district a 50.7% high‑risk score and highlighted rapid special‑education spending, late budget revisions and unauthorized contracts as key drivers.
District accounting director Angie Singh and position control manager Christian Ramirez presented the staff interim, saying the district projects a negative unrestricted ending fund balance and warned that cash flow may turn negative by June 2026. Staff recommended negative certification under state reporting rules to reflect those projections.
Trustees and dozens of public commenters — including site principals and labor representatives — pressed for immediate, transparent steps to stop the trend. Garrett Kirkland, president of United Professional Educators AFSA Local 154, said the shortfall is the “predictable result” of governance failures and flagged recent bargaining outcomes and contracting as contributors. "We face a $43,000,000 shortfall that is expected to balloon to $125,000,000 the following year," Kirkland said during public comment.
Board members requested several targeted analyses and implementation steps before the next meetings: a staffing analysis and a special‑education program and staffing analysis (requested by Member Jean for January), a facilities optimization workshop in the spring, and monthly, simple status reports that pair each fiscal‑recovery target with current month progress (Member Singh). Several trustees urged governance training and direct monthly updates tied to the fiscal solvency plan.
The board approved the staff report by roll call (ayes recorded for Member Jean, Member Callata/Kayatta, Member Benjamin, Member Singh and Member Ibarra). On the record, members emphasized the difference between adopting projections and approving further spending: Member Singh said she would not support any further increases until the business office verified budgetary controls and contract encumbrances.
Next steps: staff will work with the county fiscal adviser, FCMAT and the board to implement the fiscal recovery plan, provide the requested staffing and special‑education analyses, and return monthly status updates that show the district’s progress against specific dollar reduction targets.
