Sacramento City Schools Nearing Budget Surplus
The Sacramento City Schools district will likely avoid — or at least delay — financial disaster. Once set to go insolvent by Feb. 2021, the district and the Fiscal Crisis and Management Assistance Team say they are now nearing a $20 million surplus.
Budget measures and savings incurred from the coronavirus pandemic have put the district in a better position than expected. But it’s not built to last, reports the Sacramento Bee.
The district is still in trouble down the road and will likely go insolvent. Mike Fine, chief executive officer at FCMAT, said it’s not a matter of if, but when.
And when SCUSD requests a state loan, it will likely be the largest in California history — more than the $100 million that Oakland Unified received beginning in 2003. The district will need to request a loan from the state to recover from its financial crisis, which will take them down a long, arduous path of insolvency and state control.
A report released by FCMAT this week stated the district closed its books this year better than anticipated. Sacramento City Unified, Fine said, can go another year without receiving a state loan.
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