California State Superintendent Tony Thurmond is urging lawmakers to reject a legislative proposal, saying the state's financial oversight process works and does not require an emergency change.The proposal comes as the Sacramento City Unified School District works through a budget crisis. As it is now, the state superintendent can step in and assume some of a county superintendent's fiscal oversight authority if the state determines the county's actions are ineffective in resolving a district's financial problems.
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.
California County Superintendents, an association representing the state's 58 county offices of education, supports the change, which includes the Sacramento County Office of Education. Supporters say the change would provide a check and balance on the state superintendent's authority.
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.
In a statement, Thurmond said SCUSD's "serious financial problems" do not justify changing the statewide fiscal oversight system in the final days of the legislative session.
"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.
In an interview with CBS News Sacramento on Thursday, Cancy McArn said district leadership opposed the proposal. The district says it should be allowed to use the existing law and that any major changes to California's fiscal oversight system should go through the normal legislative process, including public hearings and input from all involved parties.
"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.
Singh said the latest projections show the district has enough money to last through the middle of May.
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.
Sacramento County Office of Education rescinded the agreement, saying it had concerns about the use of certain funds and the long-term fiscal and policy implications.
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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