The proposed change would add another layer of approval. The state superintendent would need approval from the president of the State Board of Education, or the president's designee, before taking that step.
A spokesperson for County Superintendents says they are in the best position to understand the financial circumstances and needs of their local school districts. They also say the proposal would not eliminate the state's ability to intervene but would simply prevent one state official from acting alone.
"Nothing happening in Sacramento demonstrates that California's fiscal oversight system is broken or requires an emergency change in state law. If California wants to reconsider how fiscal oversight should work statewide, that conversation deserves the normal legislative process, with public hearings, analysis, and input from those affected," Thurmond said.
"It's adding another layer in which, instead of addressing their shortcomings and helping us, they're hoping that by adding a layer the state superintendent would not be able to so easily, in his own good judgment, be able to step in," said SCUSD board member Jasjit Singh.
Sacramento city schools budget breakdown
Thursday, SCUSD Board Member Jasjit Singh confirmed the district's approved fiscal sustainability plan was moving forward and they had already received just over $20.6 million from an employee health trust. In July, the school board approved a plan identifying more than $158 million in savings and other financial fixes. As part of this plan, SCUSD agreed to a Memorandum of Understanding with the Sacramento City Teachers Association, which provides approximately $98 million in cash flow support over three years.
Thursday, CalPERS confirmed to CBS News Sacramento that SCUSD can keep the money. In a statement, a spokesperson said: "CalPERS is not requesting that the Sacramento City Unified School District return the funds disbursed from the California Employers' Retiree Benefit Trust (CERBT), since the district followed the appropriate disbursement request process. CalPERS contracts with the school district, not the Sacramento County Office of Education, to prefund health benefits for district retirees. Under this contract, the district has the authority to make contributions and request disbursements."
The legislative session is coming to an end on Aug. 31, and lawmakers will have to decide if they take up the proposal to change the education code.
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