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The Sacramento City Unified School District on Thursday reaffirmed its support for the agreement with the teachers’ union rescinded by the Sacramento County Office of Education, stressing that the deal remains a key part of its solvency plan.
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At the board meeting, district officials continued to count relief tied to the rescinded teachers’ union agreement as part of the district’s 2026-27 fiscal sustainability plan, while reiterating that it would buy the district more time to pursue longer-term solutions.
Superintendent Cancy McArn said that although the district recognizes the agreement has been rescinded, it still accounts for roughly a third of the plan.
“It’s meant to bridge to get us to where we need to be,” McArn said.
Where the district’s finances stand
Sacramento’s third-largest school district remains in a historic fiscal crisis — but district leaders highlighted that cost-cutting and other fiscal measures have pushed back the point at which the district could run out of cash, with current projections showing cash could last through April if relief tied to the agreement is realized.
In May, the Fiscal Crisis and Management Assistance Team, or FCMAT, warned that the district faced running out of cash by February 2027, if not January.
District officials on Thursday said they have secured about $36.7 million toward the $150 million target so far, with a roughly $31 million one-time state allocation accounting for most of that progress. The rescinded agreement with teachers union, meanwhile, is still counted as nearly $49 million of the district’s overall $158.6 million solvency plan.
Uncertainty remains over what will happen to provisions of the rescinded agreement. The state did not grant the district’s appeal seeking to reverse the rescission, while the district says it remains in discussions with the county office and the California Department of Education regarding the agreement’s status.
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The district has already sought roughly $20.6 million in reimbursement from a retirement account tied to the agreement, an amount included in the nearly $49 million, though officials said Thursday that the money has not yet been received.
“There’s lots of options,” Board President Tara Jeane said regarding how parts of the rescinded agreement could factor into the district’s path forward. The situation had “many moving parts” that were “constantly in flux and change,” she added.
“The MOU is still at play,” Jeane said.
“We are determined to keep moving forward and make sure we get to fiscal solvency.”
Meanwhile, board members urged the county office to work with the district toward a resolution, with board member Jasjit Singh calling it an opportunity for the county office to collaborate with the district on its fiscal challenges. Singh also pushed back on the county office’s position that money drawn from the retiree health benefits trust fund would need to be replenished, saying there is “no legal requirement” that the money be returned.
“The constant back and forth saying that we must pay back … that commentary needs to be put to rest.”
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