Sac City Unified board approves second interim as leaders seek outside help to stabilize budget

The Sacramento City Unified School District board on March 19 approved a second interim budget report showing a multi‑year fiscal shortfall and moved to expand outside fiscal assistance while tabling immediate approval of a consultant contract.

The 7‑member board voted by roll call to accept the report after presentations from district fiscal staff that increased the district’s projected expenditures — including a roughly $18 million upward revision to special‑education costs — and recognized additional state transportation revenue that partially offset deficits. Interim Chief Business staff said the revised figures reflect updated TK attendance, LCFF unduplicated pupil counts and reconciliations of salaries and benefits.

Why it matters: Trustees and community members described the district’s finances as fragile and urged rapid, transparent action to avoid deeper cuts. Several speakers warned that ongoing uncertainty and preliminary layoff notices are eroding staff morale and harming recruitment and retention.

Garrett Kirkland, speaking for UPE and local unions, said, “Uncertainty is spreading across this district,” and urged the board to produce a clear plan. Health‑services technician Rebecca Wall told trustees the central health team coordinates “143 AEDs” and other critical student health systems that layoffs would endanger.

What the board approved and what’s next: Staff recommended a multilayer strategy combining SCOE‑provided retired CBO support, FCMAT technical assistance, an interim superintendent advisory committee and a proposed contract with HYA Consulting to help implement a fiscal‑solvency plan. Trustees approved unfreezing the chief business officer position (so recruitment can begin) but voted to table immediate approval of the HYA contract pending additional review and materials.

Board members also voted to select CDWL as the district’s auditor for the coming year; funding for that audit will come from the district’s unrestricted general fund.

Trustees emphasized the need for a budget‑committee deep dive. Member Chiara Callata recommended pausing on the consultant contract until the board receives and digests the second‑interim detail, while noting the district must act quickly before final layoff deadlines.

Context and risks: The second interim projected a large structural deficit over the next two years. Staff noted several one‑time restricted resources and interfund transfers being used to smooth the current year, but cautioned those are not sustainable long‑term solutions. The district also rolled out an interactive budget dashboard intended to help trustees and the public examine fund‑level detail.

What trustees pledged: Several trustees said they will work with community and labor partners to ensure reductions are implemented equitably and that the board will continue to meet regularly with fiscal advisers. The board directed staff to return with additional detail at committee level and to continue monthly cash‑flow updates.