Sacramento City Unified board approves time‑limited HYA contract to help close multi‑million dollar deficit
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Summary
The board approved an HYA Corporation consulting agreement—up to $400,000 and time‑limited—to provide a multi‑layer fiscal stabilization plan, technical assistance and capacity building for the interim superintendent and finance team as the district addresses a reported seven‑figure deficit.
The Sacramento City Unified School District board voted unanimously to approve a time‑limited consulting agreement with HYA Corporation to support a fiscal stabilization plan and provide hands‑on assistance to the interim superintendent and central office finance staff.
Interim Superintendent McCarney presented the contract request as a “wraparound” strategy to address the district’s multiyear fiscal distress, noting existing supports from the district’s fiscal adviser, two retired chief business officers provided by the County Office of Education (SCOE), and 10 days of FCMAT cash‑flow technical assistance. She told the board the contract would be paid by invoices and described its budget as an “up to” amount of $400,000; she also said the contract timeline is recommended through June 30 while other materials refer to work continuing through September (unaudited actuals).
Dr. Ruben Frutos, lead consultant for HYA, described a three‑person HYA team that would work with the interim CBO, retired CBOs and the district’s fiscal adviser to identify root causes, standardize budget language and build staff capacity. Frutos said his preliminary review found a reported fund deficit of $94,700,000 and an additional $10,300,000 in a separate budget section (identified as a settlement), which together means about $105,000,000 must be accounted for and addressed.
“You need audited reports and a point in time where we can all trust the data,” Dr. Ruben Frutos said, describing early milestones: obtain audited or latest financial reports, complete year‑end closing to establish balances, and analyze prior solvency recommendations. He told the board HYA would provide frequent updates to the superintendent and monthly reports to the board.
Board members pressed for clear milestones, billing checkpoints and transparent termination terms. “If things aren't working, can I know this in the contract?” Member Singh asked, urging clauses that allow the district to end the agreement if HYA’s recommendations are not implemented. Dr. Frutos responded that he would report honestly and that the team would recommend parting ways if the work did not produce results.
Member Callata, who said the board generally resists contracting, said this was a different, deliberate request by the superintendent intended as a temporary bridge while the district rebuilds internal capacity. Several board members also underscored urgency tied to upcoming personnel decisions and year‑end deadlines.
Member Ibarra moved to approve the HYA agreement; Member Navarro seconded. The board passed the motion on a roll call vote with seven ayes and no opposed votes. The board adjourned at 7:11 p.m.
The district will receive monthly work updates from HYA and the board emphasized the firm's role is to identify corrective actions and help train staff so the district can resume internal control. SCOE, FCMAT and the district’s fiscal adviser remain active partners in the stabilization work.
Next steps identified at the meeting include: HYA and district staff producing an initial milestone report based on audited/latest financials, a review of prior solvency recommendations, and regular progress updates to the board. The contract includes an “up to” dollar cap and time limit; the board asked staff to present clear milestone reporting, billing checkpoints and criteria for early termination if the work fails to meet agreed outcomes.
