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California’s state superintendent on Monday rejected an appeal by the Sacramento City Unified School District, while warning the Sacramento County Office of Education that the state could intervene if the county makes decisions that worsen the district’s financial problems.
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The letters, written by California Superintendent of Public Instruction Tony Thurmond to district Superintendent Cancy McArn and county office Superintendent David Gordon, follow the Sacramento City Unified’s appeal last week of a county office’s decision to rescind an agreement between the district and its teachers union, bringing the dispute over the district’s nearly $222 million deficit to the state level.
Thurmond issued two letters Monday responding to separate requests Sacramento City Unified made Wednesday: an appeal seeking to overturn the county office’s rescission and a request for the state to intervene in the county office’s fiscal oversight of the district.
Thurmond’s letter on the appeal was brief, notifying both parties that the appeal was not upheld. His separate letter on the request for state intervention was more expansive, raising concerns about SCOE’s rescission.
The agreement with the teachers association was “not only consistent with but improved the school district’s ability to meet its financial obligations,” Thurmond wrote, adding that SCOE’s decision to rescind it was “not effective in resolving SCUSD’s financial problems.”
“If I determine that SCOE is making decisions going forward that exacerbate fiscal problems or is failing to make appropriate decisions to correct them, I will exercise my authority … to assume SCOE’s authority and exert direct oversight over SCUSD’s financial decisions,” Thurmond wrote.
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“The CDE will continue to closely monitor the situation and strongly encourages the parties to continue to work cooperatively towards addressing SCUSD’s fiscal issues.”
The district and county office did not immediately respond to The Sacramento Bee’s request for comment.
The rejection leaves the district without the projected $97.6 million in fiscal relief it had counted on from the agreement with the teachers union, creating uncertainty around a broader fiscal sustainability plan that relied in significant part on those savings. With the county fiscal adviser rescinded the agreement, Gordon argued that the deal would only postpone insolvency rather than address the district’s underlying structural deficit.
The district has been told it must identify about $150 million in cash solutions by June 2027 to avoid insolvency and a potential state takeover.
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