The Sacramento City Unified School District Board of Education voted unanimously Tuesday to appeal a county fiscal advisor's decision blocking a labor agreement the district says is critical to avoiding insolvency.
During a special meeting, the board approved an appeal to the California State Superintendent of Public Instruction, requesting a stay of any proposed intervention or board rescission actions by the Sacramento County Office of Education (SCOE).
The appeal comes days after Luz Cázares, the fiscal advisor appointed by the Sacramento County Superintendent of Schools, rescinded the board's July 30 approval of an agreement between the district and the Sacramento City Teachers Association.
That deal would allow the district to tap into a retiree health benefits reserve fund by providing $97.6 million in financial relief over three years and extend the teachers' contract through June 30, 2030.
SCUSD faces an estimated $221.8 million structural deficit.
County officials have said the agreement would shift money between district accounts, increase long-term liabilities and reduce the district's flexibility to make additional financial changes needed to restore fiscal stability.
"The Fiscal Advisor's action is necessary to protect students, families, and employees," the Sacramento County Office of Education said in a previous statement. "The Board must now adopt immediate, specific, and viable solutions before the district runs out of cash."
District leaders strongly disagree.
"The word I would use is baffled," SCUSD Board President Tara Jeane told reporters after Tuesday's meeting. "We're baffled that this is the approach that we're getting from our support system. Our support system needs to be helping us move forward, and I'm baffled at how it doesn't seem to be doing that. It seems ineffective. It seems problematic."
Jeane spoke briefly before the vote, telling board members and the public in attendance that SCUSD is a team and that while it may take time, they are working toward a solution.
The Sacramento City Teachers Association has also defended the agreement, calling it a vital step toward stabilizing the district's finances. Union leaders argue the proposal would save the district millions in retiree health care costs while preserving employee benefits and helping the district avoid insolvency.
The union has also criticized Cázares' decision, saying it undermines the authority of the district's elected school board.
Tuesday night, district leadership was finalizing the appeal to be sent to the state superintendent with the request for a state review.
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